The surge of the Pound has extended on Monday against the US Dollar, as the currency pair had reached above the 1.3350 mark during the first part of the day’s trading.
During the move the pair broke the resistance of a dominant descending pattern, which managed to delay the appreciation of the Sterling against the Dollar on Friday.
However, the surge was stopped by and was still set to face the combined resistance of the weekly R1 and the upper trend line of medium term ascending pattern near the 1.3350 mark.
During the move the pair broke the resistance of a dominant descending pattern, which managed to delay the appreciation of the Sterling against the Dollar on Friday.
However, the surge was stopped by and was still set to face the combined resistance of the weekly R1 and the upper trend line of medium term ascending pattern near the 1.3350 mark.
Comment:
On Wednesday the Pound passed a significant support level against the US Dollar, which marked the full breaking of a previously active medium term ascending channel pattern.
The event resulted in the pair declining down below various levels of significance on Thursday. Namely, on Thursday the currency rate had no support down to the 1.3160 mark, where close by the 50.00% Fibonacci retracement level together with the weekly S1 are located at.
Meanwhile, note that a new medium term pattern has been drawn. It is set to guide the rate lower until the end of July.
On Wednesday the Pound passed a significant support level against the US Dollar, which marked the full breaking of a previously active medium term ascending channel pattern.
The event resulted in the pair declining down below various levels of significance on Thursday. Namely, on Thursday the currency rate had no support down to the 1.3160 mark, where close by the 50.00% Fibonacci retracement level together with the weekly S1 are located at.
Meanwhile, note that a new medium term pattern has been drawn. It is set to guide the rate lower until the end of July.
Comment:
The Pound bounced off the upper trend line of a medium term descending channel pattern against the US Dollar in the second half of Thursday’s trading session. The event resulted into the rate plummeting as low as the 1.3120 mark on Friday morning.
The decline was only shortly slowed down by a Fibonacci retracement level near the 1.3170 mark.
In regards to the near term future, the pair is set to decline down to the support of a dominant pattern below the 1.31 level.
The Pound bounced off the upper trend line of a medium term descending channel pattern against the US Dollar in the second half of Thursday’s trading session. The event resulted into the rate plummeting as low as the 1.3120 mark on Friday morning.
The decline was only shortly slowed down by a Fibonacci retracement level near the 1.3170 mark.
In regards to the near term future, the pair is set to decline down to the support of a dominant pattern below the 1.31 level.
Given that the exchange rate has been trading sideways since yesterday, a breakout either direction is likely to occur within this session. Technical indicators suggest that bears are likely to grow strong.
If and when the aforementioned southern breakout occurs, it is likely to find support at the 200-hour SMA located near the 1.3215 mark.