The
GBP/USD pair accelerated its downward trajectory and today fell to lowest level
for the last two weeks, led by the stronger US dollar after the Fed Chair Janet
Yellen’s speech last night.
The pair found support at the 61.8% Fibonacci retracement of it latest
September up leg and now is trading at the 50% of same bullish run at 1.3340.
On the four hour time frame the price is moving below its 20-day SMA, which is
gaining downward momentum. RSI and stochastic had slightly recovered from their
extreme oversold territories but yet remain well below their mid-lines with
lack of directional strength.
The
pair is facing strong resistance at 1.3460 (38.2% of above mentioned Fibonacci
retracement) and in case of breaking it, bulls will meet next one at 1.35
handle.
But from the current levels GBP/USD might test again the immediate support at
1.3340 (61.8% Fibo) and having a poor macroeconomic calender along with
greenback’s strength, we might expect a breakout
towards the 1.3320 – 1.3300 area.
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