The British pound continued to loose against the dollar for a second day on Wednesday. The pair has depreciated by 53 pips to 1.2624, and traded within the extreme values 1.2682 and 1.2569. Poor manufacturing data from Britain in October reflected on the price, which found support from their 50-period average. The index of relative strength lost positions though, which gives extra confidence of the Bears.
The dollar rebounded against a basket of currencies on Thursday after the European Central Bank has stated that they intend to extend their asset purchase program by another nine months, while the US labor market data fell short of the forecast.
GBP/USD rose by 0.12% to 1.2641, near a nine-week high at 1.2776 on Tuesday.
GBP/USD: the forecast – neutral – is trading in the range of 1.2480/1.2750. The pound has reached a maximum 1.2728 yesterday (below strong resistance 1.2750), but has quickly weakened. I still keep the neutral point of view, and wait for further consolidation between 1.2480 and 1.2750.
A day before the announcement of the lifting of the US base rate by the Fed, the dollar marked a slight increase against most currencies. Sterling traded at higher levels in the last session, but GBP/USD closed with a slight decrease of 1.2656.
The pound marked a volatile session against the dollar on Tuesday. Ultimately opening price was close to closing, respectively, 1.2671 and 1.2657. In the early trading hours bulls dominated, in result the resistance at 1.2704 was breached as the pair peaked for the day at 1.2727. Subsequently pound lost accumulated lead.
Key levels to watch for:
Support: 1.2505; 1.2428;
Resistance: 1.2704; 1.2773.
The US Federal Reserve raised its key rate to a range of 0,50-0,75 per cent per annum, and said that it is waiting for three increases in 2017.
By 20.24 GMT GBP/USD fell by 100 pips to 1,2588.
The pound tumbled against the dollar at the end of the week. The British currency responded to negative expectations and recorded serious loss. As a result, two key levels at 1.2505 and 1.2428 were overcomed, and meanwhile the pair made the third test of the support at 1.2366. If the downward momentum continues in the future, it will be breached. After correction upward, the pair closed the week at 1.2487.
Key levels to watch for:
Support: 1.2428; 1.2366;
Resistance: 1.0540; 1.0639.
The pair seems lack of directional strength, but still in the negative territory as long as the price kept below 1.2570 zone.
The British pound recorded a moderate decline during yesterday’s session after trading in a relatively narrow range. GBP/USD slid 13 pips to 1.2352, reaching extreme values respectively at 1.2390 and 1.2324. The price continues to consolidate around the support at 1.2350, but remained under downward moving averages and RSI on negative territory, implying additional losses.
The British pound fell against the dollar on Friday. By the end of the American session GBP/USD is trading at 1.2277, shedding 0.06%. I believe that the support is now located at the level of 1.2229, the low of today’s trading, and resistance is likely at the level of 1.2504 - Monday’s high.
Dollar drops in the end of New Year in a weakened trade.
The British pound jumped by 0.25% to 1.2258 against the dollar, after falling to a two-month low 1.2201 the previous day.
Key levels to watch for:
Support: 1.2211; 1.2136;
Resistance: 1.2393; 1.2492.
GBP/USD - buy on 1.2277
• Stop: 1.2315
• Limit: 1.2118
• Time frame: 4 days
The pound recorded a second consecutive loss against the dollar on Tuesday. The British currency continued negative momentum and as a result, the pair managed to break through the first support at 1.2237. Meanwhile the pair tested the second key level at 1.2197 after hitting bottom for the day at 1.2199, but the breakthrough was postponed. Tuesday session started at a price of 1.2270 and the rate of closure was 1.2236.
The pound recovered ground against the dollar on Wednesday. The couple managed to get away from the support at 1.2197 and the breakthrough of the level was postponed. Short-term indicators remain in favor of the British currency. The session started at 1.2235, and the finale was put 88 pips higher. The trend was bullish, the highest value for the day was reached at 1.2352.
Key levels to watch for:
Support: 1.2197;
Resistance: 1.2425.
The pound recorded a powerful increase against the dollar on Thursday. So the couple continued the positive momentum from Wednesday, as two key levels at 1.2387 and 1.2425 were overcome. If the bullish trend remains high, resistance at 1.2507 will be tested soon. The session started at a price of 1.2323, while the pound gained 92 pips to finish. The maximum of the day was achieved at 1.2431.
The British pound fell against the dollar on Friday. By the close of US trading GBP/USD was trading at 1.2284, shedding 1.08%. I believe that the support is now located at the level of 1.2198, Tuesday’s low, and resistance is likely at the level of 1.2436 - the maximum of Thursday.