GBP/USD stuck at monthly S1 at 1.3073
GBP/USD stuck at monthly S1 at 1.3073
Initially, the Pound tried to restore some and even used a momentum provided by release of better than expected UK Services PMI to climb to the 1.3107 mark. However, the subsequent release of positive American data neutralized this attempt and returned the pair back to the monthly S1 at 1.3073. Unless traders receive some clear signal the currency rate might continue moving in such indecisive manner for some while. Nevertheless, a pressure from the 100-day SMA on a daily chart is likely to push the pair down even further. Although an attempt to surge to the 55-hour SMA is possible, but eventually it is still expected to slip to support area near the 1.3030 mark.
Initially, the Pound tried to restore some and even used a momentum provided by release of better than expected UK Services PMI to climb to the 1.3107 mark. However, the subsequent release of positive American data neutralized this attempt and returned the pair back to the monthly S1 at 1.3073. Unless traders receive some clear signal the currency rate might continue moving in such indecisive manner for some while. Nevertheless, a pressure from the 100-day SMA on a daily chart is likely to push the pair down even further. Although an attempt to surge to the 55-hour SMA is possible, but eventually it is still expected to slip to support area near the 1.3030 mark.
Due to quite active sell-off of the buck yesterday, the cable managed to break to the top instead of falling to support zone near the 1.3030 mark. However, the surge was boldly stopped by a combination of the 100- and 200-hour SMAs together with the 61.8% Fibonacci retracement level at 1.3166. For this reason, the currency rate is likely to start moving back to the 1.3120 mark.
However, there is a need to take into account existence of an unconfirmed three-week long descending channel consisting of three reaction lows and one reaction high. If this assumption is true, then in medium perspective the Pound should continue its gradual recovery. But in daily range its valuation is expected to be influenced by release of the Halifax HPI and the Fed Chair Yellen speech.