The GBP/USD has been consolidating during the
past couple of weeks and it has formed a symmetrical triangle on the daily
chart, around the 1.2500 level. Today the Pound weakened amid the disappointing
fundamentals out of the UK and the rally on the Dollar. The Dollar strengthen
today despite the lower than expected reading on Non-Farm Payrolls, because the
unemployment rate dropped from 4.7% to 4.5% and according to some analysts,
that is a sign that the US is approaching full employment. The drop on the GBP/USD causes the pair to
break below the symmetrical triangle and below the 1.2400 level. According to
the MACD indicator, the pair has apparently changed its trend to the downside
on the daily chart. Therefore, the GBP/USD may try to visit the 1.2300 level.
If the pair breaks below the 1.2300 level, then is will actually have the road
clear to go and visit its latest low at the 1.2110 level. To the upside, the
most relevant resistance is the 1.2700 zone where we can also find the 200 day
EMA (blue line).
Excellent observation!
ReplyDeleteThat's good to know, thanks.
ReplyDeleteI think it will continue falling.
ReplyDeleteGreat assessment. I'll keep a close eye on it.
ReplyDeleteVery good article, thank you for sharing!
ReplyDeleteThe dollar is in fact getting stronger.
ReplyDeleteThanks for such an informative article.
ReplyDelete