GBP/USD aims to pass medium pattern
Updated
The British Pound passed through the support of the 62.30% Fibonacci retracement level to depreciate against the US Dollar to the 1.2848 mark.
It is expected that the currency exchange rate will break the support of the medium pattern line at the 1.2845 mark to decline towards the weekly S2 at 1.2718. Besides, the 55-hour simple moving average is trying to catch up the rate to give additional resistance to the rate.
On the other hand, the weekly S1 at 1.2831 could push the rate back to the pattern to trade sideways between the 62.30% Fibo and the bottom boundary of the medium pattern line.
It is expected that the currency exchange rate will break the support of the medium pattern line at the 1.2845 mark to decline towards the weekly S2 at 1.2718. Besides, the 55-hour simple moving average is trying to catch up the rate to give additional resistance to the rate.
On the other hand, the weekly S1 at 1.2831 could push the rate back to the pattern to trade sideways between the 62.30% Fibo and the bottom boundary of the medium pattern line.
Note
During Tuesday’s trading session, the currency exchange rate broke the resistance of the 55-hour simple moving average. During Wednesday’s midnight hours, the rate was resisted by the 100-hour SMA at the 1.2890 mark.
In regards to the near-term future, most likely, the British Pound will depreciate against the US Dollar to the 62.30% Fibonacci retracement level at 1.2864.
Note, during today’s UK CPI data release at 9:30 GMT, the rate depreciated by 8 base points to turn the rate towards the 55-hour simple moving average at the 1.2885 mark.
Note
During the previous trading session, the 200-hour SMA resisted the British Pound to push it to pass through the support level of the 62.30% Fibonacci retracement level. On Thursday morning, the rate was located between the 62.30% Fibo and the weekly S1 at the 1.2840 mark.
In regards to the near-term future, it is expected that the 55-hour simple moving average will continue to resist the rate to the 1.2750 level.
However, during today's US Retails Sales, Core Retail Sales, PPI and Core PPI data release at 13:30 GMT, the British Pound could appreciate against the US Dollar to push the rate to break the resistance levels of the SMAs.
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