Monday, 21 May 2018

The British bears are rolling in the deep


Druging the past two weeks the Cable was developoing above the crytical suppor area at 1.3500 but even the uplifted mood that brought the royal wedding couldn’t keep it over there until today. This mornign the USD/GBP pair plummeted and pinned fresh new 2018 low at 1.3390 as a new episode from the Brexit saga was released. The bearish break was fueled by the that Scottish Prime Minister Nicola Sturgeon who  pledged to restart a drive for Scottish independence.
As seen on the four hour time frame the price abandoned its latest range and now is developing well below its bearish moving averages. RSI and stochastic are starting to bounce from their lowest levels but yet remian below their mid-line and seems taht are looking for direction.
However the British bears are now ruling the trend. Breaking the key support at 1.3500 is of significant importance as this is a historical level, being attarating the bears since January 2009. So from here we might expect test of 1.3320 area and the creation of new yearly low.




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