Thursday, 8 February 2018

Cable unable to keep post BoE's gains


Following Bank of England’s monetary policy decision and Carney’s speech the GBP/USD pair popped and reached daily high at 1.4066. But Sterling’s enthusiasm didn’t last long UD dollar’s bulls gained strength. As seen on the four hour time frame the rally was halted at the 50% Fibonacci retracement of the last week’s bearish decline, accompanied by the 100-day SMA. Further on the price dropped to 23.6 % retracement of the same rally and broke the bearish 20-day SMA. Stohastic quit its mid line and turned to south, while RSI maitains bearish slope throughout the day. Currently the pair is trading around the daily low at 1.3890, which comes as first support and in case of bleaking it to below, bears will be attracted by next one at 1.3860. 




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