GBP/USD
rallied today to reach daily high at 1.3538, but the enthusiasm was fleeting as
the pair dropped with over 80 pips. Pound bears were awaken following no
agreement between UK and EU. The European
Commission President Jean-Claude Juncker is still confident about an agreement that
might be reached ahead of December 15th summit. And according to PM May, both
sides are giving their best and are in good faith, so the progress has been
made and there is common understanding on lots of issues.
From technical point of view, the pair is moving well above its 100-day and
200-day SMAs, that are keeping bullish stance, while the 20-day SMA, also
bullish, is just two pips above the current price. Stochastic has retreated
from the extreme negative territory and is displaying strong bullish momentum.
RSI is located around its mid-line and seems that has lost directional strength.
The GBP/USD is favoring a new leg higher if breaks the 1.3505 level and then on
focus will be 1.3550. On the other hand, the pair remains vulnerable around
1.3420 area and in case bears fight it, next target will be 1.3380.
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