GBP/USD – Down but not out

FX:GBPUSD   British Pound / U.S. Dollar
Bank of England cut rates and caught markets off guard by increasing the QE program. The result was a drop in GBP across the board. Cable retreated from the pre-BOE high of 1.3345 to a session low of 1.3111.

At the time of writing, the pair traded around 1.3135.

Daily chart – Bearish Symmetrical triangle breakout, but bullish invalidation only below 1.3056

  • Pair’s failure to hold/take out above 1.3363 (50% of 2007 high-2009 low-2014 high) earlier this week and a drop from the high of 1.3345 to 1.3111 is demoralizing for the bulls, but still bullish invalidation is seen only in case of a daily closing below 1.3056, in which case the post Brexit vote low of 1.2789 stands exposed.
  • A daily closing below 1.3074 would also indicate bearish break from symmetrical triangle, although bears would need a break below 1.3056 levels.
  • As long as 1.3056 holds, the probability of a move back to 1.3363-1.35 remains intact.
  • Note: in case we close below 1.3174 today, then the spot may find itself stuck in the range of 1.3315 (23.6% of 1.5019-1.2789) - 1.3056 levels for the next few days.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out