GBP/USD trades around 55-hour SMA
Morning outlook - GBP/USD trades around 55-hour SMA
The British Pound is continuing to trade lose value against the American Dollar in a one-month-long descending channel. Despite a bunch of important macroeconomic data releases, the pair did not make any substantial advances yesterday. One of the reasons for that was the 55-hour SMA, which traders continuously used as a support and resistance. As a result, the pair ended previous trading session in the centre of the channel. Because of the bullish sentiment, traders are likely to try to push the rate to the upper edge of the pattern. However, the above 55-hour SMA once again might turnaround the pair and force it to slip to the weekly S1, which is located at the 1.3210.
The British Pound is continuing to trade lose value against the American Dollar in a one-month-long descending channel. Despite a bunch of important macroeconomic data releases, the pair did not make any substantial advances yesterday. One of the reasons for that was the 55-hour SMA, which traders continuously used as a support and resistance. As a result, the pair ended previous trading session in the centre of the channel. Because of the bullish sentiment, traders are likely to try to push the rate to the upper edge of the pattern. However, the above 55-hour SMA once again might turnaround the pair and force it to slip to the weekly S1, which is located at the 1.3210.
In line with expectations, traders used the 55-hour SMA as a benchmark to push the rate in the southern direction. The main role in the yesterday’s downfall played a release of better than expected US employment data as well as Govern Powell’s and the BOE MPC Members’ McCafferty and Haldane speeches.
Because of a quite sharp depreciation of the Pound against the Dollar, the pair not only fell from a descending channel, but also crossed the 38.2% retracement level at 1.3145.
The fact that the average market sentiment remains 59% bullish and the fact that 55% of traders are willing to purchase the Sterling suggests that the pair is likely to make a rebound either from the weekly S3 at 1.3078 or from an area near the psychological 1.30 level.