The Sterling spent the first half of Wednesday’s trading session with no significant changes against the US Dollar due to the support of the 55-hour SMA. Subsequently, bulls managed to push the rate towards the weekly R2 at 1.3929; however, these gains had already been lost by Thursday morning.
It seems that the bullish sentiment that guided the Pound last week has allayed. This assumption could point to soon prevalence of bears. Thus, it is likely that the pair continues pushing lower in this session. This attempt could be hindered by the 55– and 100-hour SMAs circa 1.3780.
Even if this area is not breached, the Pound should not surpass the monthly R3 which is located at 1.40.
It seems that the bullish sentiment that guided the Pound last week has allayed. This assumption could point to soon prevalence of bears. Thus, it is likely that the pair continues pushing lower in this session. This attempt could be hindered by the 55– and 100-hour SMAs circa 1.3780.
Even if this area is not breached, the Pound should not surpass the monthly R3 which is located at 1.40.
Comment:
Friday’s trading session ended with a 39-pip loss for the GBP/USD exchange rate. Further decline below the 1.3850 mark was limited by the combined support of the 55– and 100-hour SMAs.
Even though the Sterling breached the prevailing short-term channel, it remained near the former until early Monday.
Technical indicators suggest that the price could fluctuate without any notable leaps today. However, it is more likely that the Pound tries to regain some of loses which occurred on Friday.
A possible upside target could be the weekly R1 at 1.3955, as the upper boundary of a longer-term ascending channel is likewise located near this mark.
Friday’s trading session ended with a 39-pip loss for the GBP/USD exchange rate. Further decline below the 1.3850 mark was limited by the combined support of the 55– and 100-hour SMAs.
Even though the Sterling breached the prevailing short-term channel, it remained near the former until early Monday.
Technical indicators suggest that the price could fluctuate without any notable leaps today. However, it is more likely that the Pound tries to regain some of loses which occurred on Friday.
A possible upside target could be the weekly R1 at 1.3955, as the upper boundary of a longer-term ascending channel is likewise located near this mark.
Comment:
Despite strong signals of reversal, the Sterling managed to maintain its high position against the US Dollar on Thursday, as it was trading slightly below the 1.43 mark —its 1,5-year high—during most of the session.
This still movement was disrupted by Trump’s comments on stronger US Dollar which sent the pair for a 117-pip hourly plunge. This fall was supported by the 55-hour SMA which allowed for a subsequent appreciation towards 1.4250. As apparent on the chart, the previously-drawn ascending channel still holds; however, its steep positioning points to a soon breakout south.
By and large, this session should offer high volatility due to important data releases from both the UK and the US. A strong support should be provided by the 200-hour SMA and the weekly R1 circa 1.3950.
Despite strong signals of reversal, the Sterling managed to maintain its high position against the US Dollar on Thursday, as it was trading slightly below the 1.43 mark —its 1,5-year high—during most of the session.
This still movement was disrupted by Trump’s comments on stronger US Dollar which sent the pair for a 117-pip hourly plunge. This fall was supported by the 55-hour SMA which allowed for a subsequent appreciation towards 1.4250. As apparent on the chart, the previously-drawn ascending channel still holds; however, its steep positioning points to a soon breakout south.
By and large, this session should offer high volatility due to important data releases from both the UK and the US. A strong support should be provided by the 200-hour SMA and the weekly R1 circa 1.3950.
The Pound continues to appreciate against the US Dollar for the sixth consecutive session.
The pair managed to edge higher on Thursday; however, it lost its momentum near the 2017 high of 1.3920. This suggests that bulls might have exhausted their strength, thus paving the way for a possible decline in price. This is likewise apparent from the two short-term channels drawn on the chart, as the Sterling has failed to reach their upper boundaries this week.
By and large, it is expected that the pair trades sideways in this session, especially if the southern barrier is provided by the 55– and 100-hour SMAs and the weekly R1 circa 1.3825. In case bears push even lower, the ultimate daily low should be the monthly R2 at 1.37.
Meanwhile, the next notable resistance is the distant weekly R3 at 1.40.