The Sterling is trading slightly changed today
against the US dollar following the UK inflation numbers for September, meeting
markets expectations. During the early European session the GBP/USD pair marked
daily high at 1.3285, but retreated lower to currently trade at 1.3255.
On the
four hour time frame the price has crossed to below its 20-day SMA, which
turned flat yesterday. Meanwhile the pair now is being stalled at 23.6%
Fibonacci retracement of latest October bullish run at 1.3266. Indicators on
the same chart are showing mixed signs. RSI is located around its mid-line and
has lost directional strength. Stochastic has turned sharply to south and is
visiting its extreme oversold territory.
First support is seen around 1.3220 (38.2% of same Fibonacci retracement) and
in case of decisive break below it, bears would be likely to test next 1.3120
(the past week’s low). Looking to the upside, immediate resistance is the
1.3310 level and in case of conquering, bulls would try to march higher towards
1.3334, where Friday’s high provides the next resistance.
Next on focus is the BoE’s Governor Carney speech, who will give more clear
information on the further interest rates outlook. So let's see how the pair will develop further for the day on the back of the reversed rally ahead of this event.
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