GBP/USD continues to trade sideways for the fifth consecutive session. It seems that the pair has been trying to edge higher during this time, especially considering its failure to plunge after a breakout of the long-term channel last week. However, this expected appreciation is restricted by the combined resistance of the 55– and 100-hour SMA near 1.3570. The weekly PP is likewise located nearby.
It is likely that the Pound tries to push higher during the first part of the day. Even if an upside breakout does not occur today, a surge should follow during the following sessions.
Today’s trading range is likely to be wide due to fundamentals. Bullish gains should be capped near the 200-hour SMA at 1.3680, while the nearest support is provided by the monthly S1 at 1.3520.
It is likely that the Pound tries to push higher during the first part of the day. Even if an upside breakout does not occur today, a surge should follow during the following sessions.
Today’s trading range is likely to be wide due to fundamentals. Bullish gains should be capped near the 200-hour SMA at 1.3680, while the nearest support is provided by the monthly S1 at 1.3520.
Comment:
Despite generally bearish indicators, the Sterling eventually gathered the necessary upside momentum to dash through the 55– and 100-hour SMAs and reach the weekly PP at 1.36 on Wednesday.
In a longer perspective, the pair’s movement during the past two weeks has been stranded in a triangle-like formation. In case its upper boundary, likewise reinforced by the 200-hour SMA and the weekly PP, is surpassed, a subsequent surge up to the breached senior channel at 1.37 is likely to follow.
In terms of today, the pair is expected to fluctuate in between all three SMAs prior to the UK Monetary Policy Summary today at 1100GMT. In the event of a negative surprise, the Sterling should target either the bottom triangle line or the weekly S1 at 1.3490 and 1.3410, respectively.
Despite generally bearish indicators, the Sterling eventually gathered the necessary upside momentum to dash through the 55– and 100-hour SMAs and reach the weekly PP at 1.36 on Wednesday.
In a longer perspective, the pair’s movement during the past two weeks has been stranded in a triangle-like formation. In case its upper boundary, likewise reinforced by the 200-hour SMA and the weekly PP, is surpassed, a subsequent surge up to the breached senior channel at 1.37 is likely to follow.
In terms of today, the pair is expected to fluctuate in between all three SMAs prior to the UK Monetary Policy Summary today at 1100GMT. In the event of a negative surprise, the Sterling should target either the bottom triangle line or the weekly S1 at 1.3490 and 1.3410, respectively.
If looking from an intraday perspective, the Pound remained stable against the US Dollar on Tuesday. The pair did introduce some volatility mid-session, but it ended soon, thus leaving the rate near its Tuesday-morning level.
The 100-hour SMA is once again providing strong support for the Pound today. In case this line is surpassed, the most likely scenario would see the pair accelerating and trying to reach the 200-hour SMA at 1.3650.
On the other hand, a failure to do so is expected to result in a decline. Even though the nearest support is the distant weekly S1 at 1.3410, the Sterling might not fall this low, given its recent attempts surpass the aforementioned SMAs.
Technical indicators still remain bearish, while the pair’s potential during the following days is to the upside.