The GBP/USD pair retreated from Friday’s high after Carney’s
speech at the IMF and lost more than 200 pips today. The reversal technically
is reasonable after the double top pattern at 1.3617, clearly seen on the four
hour time frame. RSI and stochastic are moving away from the extreme overbought
territory,where entered during the BoE rally, but yet remain above their
mid-lines. Meanwhile the 20-day SMA is keeping its bullish slope, but the price
is nearing the 23.6% Fibonacci retracement of its latest upleg, which is acting
as immediate support around 1.3420.
From fundamental point of view, the agenda has nothing to offer from UK and now
FOMC comes on sight. But having in mind that Fed’s rate hike is old news, markets more likely will be attracted
by the extravagance of BoE.
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