It is apparent on the chart that bears who were guiding GBP/USD on Thursday have lost some of their positions, thus leaving the rate rather stable during the last week’s final trading session. A fresh channel down was drawn to show the rate’s movement during the previous week. Its bottom boundary was tested on Friday.
Technical indicators on the hourly time-frame are starting to recover even though the price has not still picked up this trend. In general, it seems that the Pound may still be pushed lower in this session, pressured from above by the 55-hour SMA and the weekly PP. The nearest resistance that should stop significant losses is the weekly and monthly S1s at 1.2930.
This day is likely to be calm with no significant volatility, as no major data releases are scheduled for today.
Technical indicators on the hourly time-frame are starting to recover even though the price has not still picked up this trend. In general, it seems that the Pound may still be pushed lower in this session, pressured from above by the 55-hour SMA and the weekly PP. The nearest resistance that should stop significant losses is the weekly and monthly S1s at 1.2930.
This day is likely to be calm with no significant volatility, as no major data releases are scheduled for today.
Comment:
The GBP/USD exchange rate remained stable on Tuesday, as it was pressured from both sides by the 55-day SMA and the monthly and weekly S1s.
The pair was trading near the former for the most part of the session, but nevertheless failed to gather the necessary bullish momentum to break out. This demonstrates that some bearish movement could prevail today. The closest target is the 61.80% Fibonacci retracement and the senior channel line at 1.29, while the weekly S2 is located at 1.2850.
The bullish scenario should likewise be considered if the 55-hour SMA is surpassed. In this case, the daily high should be around 1.30 where the 100-hour SMA is located.
The GBP/USD exchange rate remained stable on Tuesday, as it was pressured from both sides by the 55-day SMA and the monthly and weekly S1s.
The pair was trading near the former for the most part of the session, but nevertheless failed to gather the necessary bullish momentum to break out. This demonstrates that some bearish movement could prevail today. The closest target is the 61.80% Fibonacci retracement and the senior channel line at 1.29, while the weekly S2 is located at 1.2850.
The bullish scenario should likewise be considered if the 55-hour SMA is surpassed. In this case, the daily high should be around 1.30 where the 100-hour SMA is located.
Comment:
The 55-hour SMA has managed to restrict the Pound from appreciation for the fifth consecutive session. This line was re-tested early on Wednesday, followed by a plunge down to the weekly S2 at 1.2854.
It is apparent that the pair has fallen down to the bottom boundary of three different-scale channels. This allows to think that some appreciation might be under way. In addition, technical indicators still remain in the strongly oversold territory.
A surge is expected only if the 55-hour SMA and the monthly and weekly S1s are breached at 1.2930. This move should trigger bulls for a short-term surge up to the monthly PP at 1.3050, at least.
On the other hand, it does not seem that the rate could sustain the current decline any longer. The psychological 1.28 level is unlikely to be breached to the downside.
The 55-hour SMA has managed to restrict the Pound from appreciation for the fifth consecutive session. This line was re-tested early on Wednesday, followed by a plunge down to the weekly S2 at 1.2854.
It is apparent that the pair has fallen down to the bottom boundary of three different-scale channels. This allows to think that some appreciation might be under way. In addition, technical indicators still remain in the strongly oversold territory.
A surge is expected only if the 55-hour SMA and the monthly and weekly S1s are breached at 1.2930. This move should trigger bulls for a short-term surge up to the monthly PP at 1.3050, at least.
On the other hand, it does not seem that the rate could sustain the current decline any longer. The psychological 1.28 level is unlikely to be breached to the downside.
Comment:
The Sterling has been unable to pick up momentum against the US Dollar, thus in total losing 2.75% since the beginning of August.
On Thursday, GBP/USD was stable during the first part of the day limited by the weekly S2 at 1.2854. This was followed by a change in sentiment mid-session when the rate breached the senior channel and fell down to the psychological 1.28 mark—the pair’s lowest position since August 2017.
The rate is clearly oversold which should in turn increase upside risks in the nearest time. If the 1.28 level does not hold the rate, it is likely that the current decline ends only near the monthly S2 and the weekly S3 at 1.2735.
From the upside, the Sterling remains restricted by the 55– and 100-hour SMAs near 1.29.
The Sterling has been unable to pick up momentum against the US Dollar, thus in total losing 2.75% since the beginning of August.
On Thursday, GBP/USD was stable during the first part of the day limited by the weekly S2 at 1.2854. This was followed by a change in sentiment mid-session when the rate breached the senior channel and fell down to the psychological 1.28 mark—the pair’s lowest position since August 2017.
The rate is clearly oversold which should in turn increase upside risks in the nearest time. If the 1.28 level does not hold the rate, it is likely that the current decline ends only near the monthly S2 and the weekly S3 at 1.2735.
From the upside, the Sterling remains restricted by the 55– and 100-hour SMAs near 1.29.
The Pound was pressured lower against the US Dollar early on Monday. This decline was limited, as the strong support of the monthly and weekly S1s at 1.2930 stopped any attempts to push the rate significantly lower. The pair subsequently remained trading in a narrow range above this cluster and remained there on Tuesday morning, as well.
Technical indicators flash bearish signals, suggesting that this fall should continue today. However, it is rather unlikely that significant bearish pressure is put on the pair, especially if no important data releases are scheduled for today. In addition, the 61.80% Fibonacci retracement and a senior channel line are located nearby to support the Sterling.
If the 55-hour SMA is breached, the next target is the weekly PP and the 100-hour SMA.