GBP/USD tests 1.3410
Updated
GBP/USD tests 1.3410
In first half of Friday’s trading session the Pound was actively appreciating against the Dollar being fuelled by reports about progress made on Brexit divorce bill. However, once this anxiety ran out and the US posted another set of positive employment data the pair returned back to the monthly PP located at the 1.3372 mark. At the moment, the cable is testing combined resistance level set up by the 55-, 100- and 200-hour SMAs as well as the weekly PP at 1.3415. Unless the rate receives a proper impulse from some news, a rebound is expected to happen. Such scenario also looks more plausible from fundamental perspective due to expectations of the upcoming interest rate hike and adoption of tax bill. However, today a deep plunge is unlikely to happen, as the above monthly PP still represents strong support barrier.
In first half of Friday’s trading session the Pound was actively appreciating against the Dollar being fuelled by reports about progress made on Brexit divorce bill. However, once this anxiety ran out and the US posted another set of positive employment data the pair returned back to the monthly PP located at the 1.3372 mark. At the moment, the cable is testing combined resistance level set up by the 55-, 100- and 200-hour SMAs as well as the weekly PP at 1.3415. Unless the rate receives a proper impulse from some news, a rebound is expected to happen. Such scenario also looks more plausible from fundamental perspective due to expectations of the upcoming interest rate hike and adoption of tax bill. However, today a deep plunge is unlikely to happen, as the above monthly PP still represents strong support barrier.
Note
GBP/USD slides to 1.3338In result of the previous trading session the cable made a rebound from a combination of the 55-, 100- and 200-hour SMAs as well as the weekly PP at 1.3415 just as expected. Even though traders are mainly focused on the upcoming decision on interest rate hike, there is also a need to take into account an effect from release of information on the UK inflation. In case of match with expectations, the Pound might temporarily jump back to the above resistance barrier. In the opposite case, bears are likely to push it down to the 1.3300 mark. So, depending on the released data, the currency rate might start tomorrow’s trading day either near the monthly PP at 1.3372 or the weekly S1 at 1.3290.
Note
GBP/USD slips to 1.3300 againUntil release of data on the American PPI, the cable was moving below the monthly PP, as expected. But then publication of better than anticipated result led to active appreciation of the buck, which pushed the rate through support zone located between the 1.3338 and 1.3331 marks. Accordingly, yesterday’s trading session the pair ended near the 1.3300 psychological level. As this support line crosses the bottom boundary of a senior descending channel, the Pound should try to restore some value today.
However, the fact that it is simultaneously moving in other two descending channels makes such scenario unlikely. Moreover, the pair constantly experiences pressure from the slipping 55- and 100-hour SMAs. But most importantly is that expectations of the upcoming interest rate hike increases bearish sentiment that might result in a deep plunge to the 1.3230 mark.
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