Monday, 22 May 2017

GBP/USD Range Bounded

Having Brexit drama in play the Cable succeeded to regain the 1.3000 handle, due to greenback’s weakness. The GBP/USD opened lower undermined by Minister Davis, who pointed out that UK may leave the negotiation's table should the EU insist  on the payment of a Brexit bill of around €100 billion, which lead the pair downwards to 1.2965. 
Well the US session brought US dollar's selling and the pair moved higher.
Technically speaking the pair is currently range bounded and is keeping neutral stance. The price is slightly above the 20-day SMA. RSI is consolidating around 55 level while stochastic has retreated form overbought conditions and has lost directional strength.
Ahead of UK election the most likely scenario is neutral with a limited downward scope on standing greenback's weakness.


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