GBP/USD Daily Review

Pound/dollar was hesitant yesterday. The views remain neutral, possibly with slight downside signals for testing at 1.3900. Immediate resistance is at 1.4050. A clear breakthrough and daily closure above this level may cause future bullish pressure to test 1.4150. But as long as the price stays below 1.4275, we can see a further downward correction to the trendline support line.

Pound/dollar was indecisive yesterday. The price attempted to rise up with a peak of 1.4069 but closed lower at 1.3966. Views are neutral. As a whole, I stay bullish but the longer the pair stays inside the downward channel, the price is still in the downward correction phase. Immediate support is seen at 1.3927 (Monday’s bottom). A clear break below this level may lead to further bearish pressure for testing 1.3850. Short-term resistance is 1.4050, followed by 1.4100. A clear break above 1.41 and a bearish canal can become a serious threat to the bears’ correction phase.

Pound / dollar had a bearish momentum yesterday, reaching bottom at 1.3781. The views are bearish for testing 1.3750 - 1.3700 as part of the downward correction phase. Resistance for the day is 1.3835. A clear breakthrough over it could take the price to a neutral zone with testing at 1.3900, but as long as it stays in the downward channel, the price is still in the bears’ correction phase. In the downside, a clear break and a daily / weekly closing below 1.3700 will open the doors to 1.3600 and the trendline support next week.

Pound / dollar made momentum up yesterday, forming a peak at 1.3917. Expectations are bullish in the near future. The price now tests the upper limit of the downward channel, located around 1.3930 / 40. A clear breakthrough and daily closing over the price channel will become a serious threat to the downward correction phase with 1.4000 testing. The first support is at 1.3860. A clear breakthrough below this level may take the price to a neutral zone with test support of 1.3800 - 1.3750. Major bullish views remain valid, but we need a clear breakthrough of at least over 1.4000 to test the resistances of 1.4275.

Pound / dollar was indecisive yesterday, but still managed to hold upward intraday signals. The downward price channel violation supports these bullish signals. The outlook is upwards, especially if the price can make a clear break above 1.4000 for testing the region 1.4070 - 1.4100. Day support is 1.3925 (yesterday’s bottom). A clear break below it can take the price to a neutral zone, the direction will become obscure, testing at 1.3875 or lower. Upwards a clear break and daily closure above 1.4070 - 1.4100 will take the cost of retesting the key resistance 1.4275. Basically, I’m staying in the bulls camp.

ING currency strategists believe that the pound may try to update the highs over the course of next week.

This week, the pound broke through the upper limit of the consolidation formation since the beginning of this year, and while bears persistently defend the level of 1.40, the downturns still continue to attract buying interests around the former resistance. ING analysts point out that the situation looks favorable enough for bulls, and if next week we see a combination of constructive wage data, the Bank of England’s harsh rhetoric and the announcement about transition agreement for the UK’s exit from the EU, the upward trend of GBPUSD may well develop. The Bank notes that the pound is quite capable of a sharp jump to 1.4250 - 1.4300, and, although the movement may be emotional and unstable, in general, the balance of risks in the form of a steady growth of the British economy, the Bank of England’s intention to normalize its monetary policy and chaos in the White house gives ING reason to keep the forecast regarding GBPUSD in the second quarter at 1.45.

Pound / dollar had a significant upward momentum yesterday, sliding over the “tail” of the downward pin bar. This fact should invalidate the bearish scenario on the bearish pin bar. The prospects are bullish to test the key resistance 1.4275 - 1.4344. Intraday support is 1.4190. A clear breakthrough below this level could take the price to a neutral zone with 1.4125 testing. But as a whole, I stay in the bulls camp and every downward pressure should now be seen as a good opportunity for purchases.