Yesterday the GBP/USD pair
declined and bottomed at 1.2198, but closed higher at 1.2237. As seen on the
hourly chart, the price crossed to downwards the support trend line, which
suggested a bearish scenario.
But today we witnessed an interesting recovery, mostly due to the better than
expected macro data released in UK. Another push up was set by FOMC minutes
later on today and the pair settled above 1.2330. Currently the pair is placed
above the support trend line.
Given the fact that the Brexit uncertainty still persists, rallies are not
excluded because selling opportunities are yet to come along with 1.2500 area pending
bearish orders.
The H4 chart is displaying that the pair is situated very close to the 23.60%
Fibonacci retracement of the latest daily decline and well above the 20-day SMA,
which is acting as a support now (1.2275). Some bullish signs are indicated by
the technical indicators as well. RSI is heading to north with current location at 60
level. Stochastic is nearing overbought conditions and is showing strong
bullish momentum.
As long as bulls are running in the short term, next target is assigned to be
1.2480, the 50% Fibonacci retracement of latest daily decline.
It is clearly that the Sterling benefited from the good macro UK data which is
somehow damaging the expectation of the British economy development ahead of
Brexit. And we may conclude that the latest movements of the British Pound are
remarkable having in mind the behaviour against the financial markets.
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