Monday, 18 September 2017

GBP/USD Lower

The GBP/USD pair retreated from Friday’s high after Carney’s speech at the IMF and lost more than 200 pips today. The reversal technically is reasonable after the double top pattern at 1.3617, clearly seen on the four hour time frame. RSI and stochastic are moving away from the extreme overbought territory,where entered during the BoE rally, but yet remain above their mid-lines. Meanwhile the 20-day SMA is keeping its bullish slope, but the price is nearing the 23.6% Fibonacci retracement of its latest upleg, which is acting as immediate support around 1.3420. 
From fundamental point of view, the agenda has nothing to offer from UK and now FOMC comes on sight. But having in mind that Fed’s rate hike is old  news, markets more likely will be attracted by the extravagance of BoE. 


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