Similarly to other major currencies, the Pound remaine stable against the US Dollar on Friday. A fall below the 1.3950 mark was supported by the 38.20% Fibo retracement and the 100-hour SMA, while appreciation was restricted by the monthly PP at 1.40. The latter, however, was surpassed early on Monday when the pair started advancing towards the weekly R1 at 1.4060.
Technical indicators flash mixed signals, suggesting that the same period of consolidation might continue today, as well. In addition, no significant fundamentals that could pressure the rate either direction are scheduled for this session.
Given that the general trend is tended northwards, the Pound is likely to reach the weekly R1, but further advance could be limited.
In terms of support, the Sterling should not fall below 1.3960.
Technical indicators flash mixed signals, suggesting that the same period of consolidation might continue today, as well. In addition, no significant fundamentals that could pressure the rate either direction are scheduled for this session.
Given that the general trend is tended northwards, the Pound is likely to reach the weekly R1, but further advance could be limited.
In terms of support, the Sterling should not fall below 1.3960.
The Pound showed high volatility against the US Dollar on Monday, as the pair was trading in the 1.4060/1.3940 area during this time. Strong bearish sentiment took over the market mid-session when the rate plunge 121 pips within a couple of hours.
It has since been moving in a narrow range, thus not being able to surpass the strong bounds of the 55– and 100-hour SMAs, the weekly PP and the 38.20% Fibo retracement. Given that the northern barrier is likewise limited by the 200-hour SMA and the monthly PP, the Sterling might fail to make big advances in either direction for a couple of hours.
It is expected that support surrenders soon, forcing the rate down to the senior channel at 1.3930. In case fundamentals do not disrupt the current market sentiment, the rate is unlikely to move above 1.40.