Despite the massive plunge on Thursday, the Sterling failed to accelerate against the US Dollar during the following day. As a result, the pair lost 87 pips and reached the combined support of the senior channel, the weekly S1 and the monthly PP.
The rate lingered near the channel line on Monday morning, thus showing that bulls have managed to regain enough strength to resist a further fall. Technical indicators are slowly recovering from their lows which likewise adds some ground to a possible upward momentum today. No resistance are limiting the pair until the psychological 1.41 mark where the 55-hour SMA is located.
In case of a strong up-move, the Pound could hinder near this moving average for a brief period of time prior to taking on the course towards the 100– and 200-hour SMA circa 1.42.
The rate lingered near the channel line on Monday morning, thus showing that bulls have managed to regain enough strength to resist a further fall. Technical indicators are slowly recovering from their lows which likewise adds some ground to a possible upward momentum today. No resistance are limiting the pair until the psychological 1.41 mark where the 55-hour SMA is located.
In case of a strong up-move, the Pound could hinder near this moving average for a brief period of time prior to taking on the course towards the 100– and 200-hour SMA circa 1.42.
Comment:
Following a four-day decline against the US Dollar, the Sterling managed to recover some of its lost positions on Tuesday. As a result, it breached the 55-hour SMA, but was nevertheless limited by the monthly PP at the psychological 1.40 mark.
An upside breakout of the 55-hour moving average sends bullish signals, thus suggesting that this recovery is likely to continue during the remaining part of the week, as well.
This session, however, should not produce large gains due to a strong resistance cluster located at 1.4050. Apart from the 100-hour SMA and the a breached senior channel, the 55-day SMA is likewise located in this area. This might either set the Pound for a movement sideways or another fall down to the weekly or monthly S1 at 1.3876.
Following a four-day decline against the US Dollar, the Sterling managed to recover some of its lost positions on Tuesday. As a result, it breached the 55-hour SMA, but was nevertheless limited by the monthly PP at the psychological 1.40 mark.
An upside breakout of the 55-hour moving average sends bullish signals, thus suggesting that this recovery is likely to continue during the remaining part of the week, as well.
This session, however, should not produce large gains due to a strong resistance cluster located at 1.4050. Apart from the 100-hour SMA and the a breached senior channel, the 55-day SMA is likewise located in this area. This might either set the Pound for a movement sideways or another fall down to the weekly or monthly S1 at 1.3876.
Comment:
The Sterling was driven by downside potential during the first part of Wednesday. The rate stabilised mid-session and was subsequently trading in a narrow 1.3925/55 range.
It is expected that the pair increases its volatility soon and ends this slight movement sideways. Bulls might fail to break out northwards, as the 1.3960 level is reinforced by the 38.20% Fibonacci retracement and the 55– and 100-hour SMAs. This cluster could force the Pound lower towards the 1.39 mark, as likewise signalled by bearish technical indicators.
The nearest support is set by the distant weekly S1 at 1.3876 which might not actually be reached today if the US Core Durable Goods Orders do not provide any negative surprises.
Meanwhile, the ultimate high for today should be 1.40.
The Sterling was driven by downside potential during the first part of Wednesday. The rate stabilised mid-session and was subsequently trading in a narrow 1.3925/55 range.
It is expected that the pair increases its volatility soon and ends this slight movement sideways. Bulls might fail to break out northwards, as the 1.3960 level is reinforced by the 38.20% Fibonacci retracement and the 55– and 100-hour SMAs. This cluster could force the Pound lower towards the 1.39 mark, as likewise signalled by bearish technical indicators.
The nearest support is set by the distant weekly S1 at 1.3876 which might not actually be reached today if the US Core Durable Goods Orders do not provide any negative surprises.
Meanwhile, the ultimate high for today should be 1.40.
Comment:
GBP/USD demonstrated high volatility in both directions on Thursday. The pair, however, managed to remain within the bounds of a short-term channel, at the same time having returned to its Wednesday-morning level today.
It is expected that the Sterling maintains its slight tendency downwards during the first part of the day due to the combined resistance of the 55– and 100-hour SMAs and the 38.20% Fibo retracement near 1.3945.
However, this session is dependent on the US and UK GDP data releases that are very likely to introduce quite significant volatility in the market. Thus, the possible trading range for today should be relatively wide.
Gains are limited by the 200-hour SMA at 1.4060, while the distant monthly S1 and the weekly S2 are supporting the Pound at 1.3750.
GBP/USD demonstrated high volatility in both directions on Thursday. The pair, however, managed to remain within the bounds of a short-term channel, at the same time having returned to its Wednesday-morning level today.
It is expected that the Sterling maintains its slight tendency downwards during the first part of the day due to the combined resistance of the 55– and 100-hour SMAs and the 38.20% Fibo retracement near 1.3945.
However, this session is dependent on the US and UK GDP data releases that are very likely to introduce quite significant volatility in the market. Thus, the possible trading range for today should be relatively wide.
Gains are limited by the 200-hour SMA at 1.4060, while the distant monthly S1 and the weekly S2 are supporting the Pound at 1.3750.
Despite flashing bullish signals on Monday morning, the Sterling managed to maintain its downward-sloping movement throughout the day. As a result, it breached the senior channel and the monthly PP along the way. The pair had remained near the latter by the time of this analysis.
It is expected that the 1.39 mark is not surpassed today, as bulls might want to re-gain some of their lost positions after the massive 3.19% plunge that started last Tuesday. In addition, technical indicators are likewise starting to converge.
The Sterling could find strong resistance at 1.40 where the 55-hour SMA and the senior channel are located. This level should eventually be breached just to push the pair towards the 100-hour SMA and the weekly PP at 1.41.