The British Sterling was driven by upside risks on Thursday, thus being able to appreciate 75 pips against the US Dollar. This session, however, was market by low volatility slightly below the post-Brexit-vote high of 1.4212.
This northern barrier is expected to hold strong, resulting in a southward pressure towards the 100– and 200-hour SMAs near 1.4150 today. The 55-hour moving average which was located in between the current price and the aforementoned area in the morning could likewise hinder the pair for several hours.
In general, the prevailing ascending channel is expected to surrender, thus allowing the Pound to approach the monthly PP and the 38.20% Fibo retracement at 1.3995. A steeper fall during the following sessions would confirm a double-top-like formation.
This northern barrier is expected to hold strong, resulting in a southward pressure towards the 100– and 200-hour SMAs near 1.4150 today. The 55-hour moving average which was located in between the current price and the aforementoned area in the morning could likewise hinder the pair for several hours.
In general, the prevailing ascending channel is expected to surrender, thus allowing the Pound to approach the monthly PP and the 38.20% Fibo retracement at 1.3995. A steeper fall during the following sessions would confirm a double-top-like formation.
Comment:
Bears have dominated GBP/USD for the second consecutive session. The slight recovery apparent on Monday morning was stopped by the 55-, 100– and 200-hour SMAs and the bottom boundary of a seven-week ascending channel circa 1.4150.
As a result of this strong momentum south, the Sterling breached the monthly PP and was stopped solely by the 38.20% Fibo retracement near the 1.3950 mark.
Technical indicators are converging and are located in the strongly bearish territory, thus bulls might try to use this opportunity to push the rate higher. A possible upside target for today could be near 1.4150 where all the three moving averages are located.
In case bulls fail to move the rate above 1.40, a subsequent fall down to 1.3825 is likely.
Bears have dominated GBP/USD for the second consecutive session. The slight recovery apparent on Monday morning was stopped by the 55-, 100– and 200-hour SMAs and the bottom boundary of a seven-week ascending channel circa 1.4150.
As a result of this strong momentum south, the Sterling breached the monthly PP and was stopped solely by the 38.20% Fibo retracement near the 1.3950 mark.
Technical indicators are converging and are located in the strongly bearish territory, thus bulls might try to use this opportunity to push the rate higher. A possible upside target for today could be near 1.4150 where all the three moving averages are located.
In case bulls fail to move the rate above 1.40, a subsequent fall down to 1.3825 is likely.
Similarly to other major currencies which are trading against the US Dollar, downside risks were driving the Pound during the previous session. Thus, it was unable to re-test its 1,5-year high of 1.4310.
The pair found support for at the 55-hour SMA for a brief period of time; however solid US fundamentals at 1330GMT resulted in a southern breakout of this moving average and eventually the longer-term SMAs, as well. In addition, the bottom boundary of the prevailing seven-week ascending channel also surrendered.
Technical indicators flash bullish signals. However, the expected appreciation is likely to be delayed or even stopped by the aforementioned SMAs in the 1.4165/1.4200 area.
In terms of support, the Pound is restricted by the monthly PP and the 38.20% Fibo retracement at 1.40.