GBP/USD was trading sideways on Friday, as any fall or advance was restricted by several support/resistance levels. As a result, the Pound remained fluctuating around the 200-hour SMA for the second consecutive session.
Even though technical indicators flash mixed signals, it seems that the Pound is ready to leave this ranging motion and appreciate in this session, especially after surpassing the 200-hour and 55-period (4H) SMAs early today. This is likely to add some bullish pressure and allow the pair to edge towards the 100– and 200-period ones, the 50.00% Fibo retracement and the weekly R1 at 1.3190. However, it still has to breach the weekly PP and the 55– and 100-hour SMAs near 1.3130 to fulfil this scenario.
In case bears take over, the nearest support is the weekly S1 at 1.3050.
Even though technical indicators flash mixed signals, it seems that the Pound is ready to leave this ranging motion and appreciate in this session, especially after surpassing the 200-hour and 55-period (4H) SMAs early today. This is likely to add some bullish pressure and allow the pair to edge towards the 100– and 200-period ones, the 50.00% Fibo retracement and the weekly R1 at 1.3190. However, it still has to breach the weekly PP and the 55– and 100-hour SMAs near 1.3130 to fulfil this scenario.
In case bears take over, the nearest support is the weekly S1 at 1.3050.
Comment:
Some bullish momentum was apparent in the market on Tuesday morning. This appreciation failed to exceed 1.3170, as the combined resistance of the 100– and 200-period (4H) SMAs weakened the strength of bulls. As a result, the Pound provided the third confirmation of a short-term trend-line near 1.3160.
The rate was pushed lower past the 55-, 100– and 200-hour SMAs later in the day. Technical signals are mixed today. However, the rate moving below this strong support cluster does suggest further decline in this session.
A possible downside target is the weekly S1 at 1.3050. In terms of resistance, it is unlikely that the weekly R1, the 50.00% Fibo and the 200-period SMAs near 1.32 are breached.
The FOMC rate statement might introduce high volatility in the evening.
Some bullish momentum was apparent in the market on Tuesday morning. This appreciation failed to exceed 1.3170, as the combined resistance of the 100– and 200-period (4H) SMAs weakened the strength of bulls. As a result, the Pound provided the third confirmation of a short-term trend-line near 1.3160.
The rate was pushed lower past the 55-, 100– and 200-hour SMAs later in the day. Technical signals are mixed today. However, the rate moving below this strong support cluster does suggest further decline in this session.
A possible downside target is the weekly S1 at 1.3050. In terms of resistance, it is unlikely that the weekly R1, the 50.00% Fibo and the 200-period SMAs near 1.32 are breached.
The FOMC rate statement might introduce high volatility in the evening.
No changes occurred to the positioning of GBP/USD on Monday. Lack of outside pressure resulted in the pair remaining between the 100– and 200-hour SMAs in the 1.3100/50 area. It does show a slight tendency upwards along the bottom channel line.
The Pound failing to pick up momentum during the previous trading sessions allows to think that some bearish pressure could dominate the pair in the short term. This move should still be confirmed with a southern breakout of the 55– and 200-hour SMAs. In case this occurs, the Sterling should approach the weekly S1 at 1.3050.
Conversely, the rate surpassing the 100-hour SMA would result in a test of the 50.00% Fibonacci retracement, the weekly R1 and the 200-period (4H) SMA at 1.32.