With
the beginning of the new week the GBP/USD pair resumed its bearish sentiment.
Yesterday the pair broke through the key support at 1.2200 and pinned daily low
at 1.2123.
During today’s early trading the pair was flirting with 1.2100 levels, which
has not been visited since late October 2016.
On the H4 chart technical indicator is showing oversold conditions. RSI at
around 37% and is displaying lack of
strength. Stochastic still can not cross the 20 level, but gaining slight
upward momentum.
Considering
the upcoming decision of the UK’s Supreme Court to state whether the Parliament
or Theresa May can trigger Article 50 and continue with the negotiations, the
future for the Sterling remains cloudy.
The key support at 1.2200 now has turned intraday resistance. Next resistances
are seen at 1.2305 (the 100-day moving average) and 1.2400. Looking downwards
support is located at 1.2105 (today’s low) and 1.2070 (late October’s low).
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