Strong bullish sentiment was guiding the GBP/USD exchange rate on Monday. The Pound breached the monthly S2 and the weekly PP mid-session which was followed by a 0.75% surge against the Greenback. This allowed the pair to test the weekly S1 at 1.2830 this morning.
Even if the rate manages to push slightly higher during the following hours, these bullish gains are unlikely to surpass the psychological 1.29 level. The 61.80% Fibonacci retracement is also located there.
Thus, it is more likely that bears try to regain some of their lost positions in this session and thus push the Pound down to the 55– and 200-hour SMAs at 1.2750.
Even if the rate manages to push slightly higher during the following hours, these bullish gains are unlikely to surpass the psychological 1.29 level. The 61.80% Fibonacci retracement is also located there.
Thus, it is more likely that bears try to regain some of their lost positions in this session and thus push the Pound down to the 55– and 200-hour SMAs at 1.2750.
Comment:
The price of the GBP/USD exchange rate did not change significantly on Wednesday. The most important development during the previous session was a bearish breakout from the prevailing four-day ascending channel.
The Pound moving out of this steep pattern demonstrates that the strong bullish momentum which was guiding the rate since last Friday has allayed considerably. In case the 55-hour and 100-period (4H) SMAs at 1.2880 are breached, it is expected that the Pound continues to edge even lower down to the monthly S2, the weekly PP and the 55-period SMA at 1.2750.
In terms of the upside, it is unlikely that the weekly S3 at 1.30 is breached, given that this level is likewise reinforced by the 200-period SMA.
The price of the GBP/USD exchange rate did not change significantly on Wednesday. The most important development during the previous session was a bearish breakout from the prevailing four-day ascending channel.
The Pound moving out of this steep pattern demonstrates that the strong bullish momentum which was guiding the rate since last Friday has allayed considerably. In case the 55-hour and 100-period (4H) SMAs at 1.2880 are breached, it is expected that the Pound continues to edge even lower down to the monthly S2, the weekly PP and the 55-period SMA at 1.2750.
In terms of the upside, it is unlikely that the weekly S3 at 1.30 is breached, given that this level is likewise reinforced by the 200-period SMA.
The Sterling has strengthened significantly against the US Dollar since mid-Friday. This marks a 175-pip surge, with 107 pips being added on Tuesday. By this morning, the pair had managed to reach the weekly R2 at 1.2910. The monthly S1 is also located nearby.
The Sterling has remained near this resistance cluster for some time now. It could point to a possible change in sentiment, thus resulting in a decline today.
The nearest support of importance is the weekly R1 and the 55-hour SMA near 1.2825; however, the trading range could be even wider in the wake of fundamental events later in the day. The pair is unlikely to fall below the 200-hour SMA, the monthly S2 and the weekly PP at 1.2740.