Thursday, 6 July 2017

GBP/USD At 23.6% Fibo



From the beginning of the week the GBP/USD pair keeps advancing and and in the early session today reached 1.2985. The pair couldn’t hold on this level and retreated to currently trade at 1.2930.
The demand for the greenback faded away mostly due to the absence of any hawkish surprise, shown by FOMC minutes. On the other hand, there no macro releases in UK today and most important that would stir the market remains the anticipation of NFP on Friday.
On the four-hour time frame the price has crossed to above the bearish 20-day SMA and is located very close to the 23.6% Fibonacci retracement of latest rally. RSI has retreated from the overbought area and is showing strong bearish momentum, but yet is holding around it mid-lines. Stochastic is moving to the opposite and is heading north although has lost directional strength.  
To confirm the bullish trend, bulls must conquer first 1.2960 mark and next 1.2985 (today’s high). Until then the outlook remains neutral to bullish.


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