Thursday, 12 January 2017

GBP/USD Higher

The US President Elect Donald Trump press conference held yesterday coudn’t confirm the expectations for stronger economic growth and planted hesitation in investors sentiment. The US dollar suffered and was set under great selling pressure.
The USD/GBP pair was seen lower before the conference and marked close to a three months low. The pair quickly recovered and in the early trading hours today posted a fresh weekly high at 1.2317. 
Technical readings are indicating strong near-term bullish note. The pair has crossed to above the 20-day SMA. RSI heads to north with has surpassed the mid lines. Stochastic is showing extreme overbought market and displaying strong bullish momentum.
Bearish picture could be seen again if the pair breaks the immediate support located at 1.2200, which would drag the pair towards 1.2150 area. 
Resistances are now placed at 1.2360 and higher at 1.2400.


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