GBP/USD does not succeed to climb above 1.3400
Updated
GBP/USD does not succeed to climb above 1.3400
Despite adoption of tax reform and release of various macroeconomic data, the British Pound is continuing to trade against the Dollar in a two-week long symmetrical triangle whose upper boundary simultaneously represents the slope of a larger falling wedge pattern. Because of an empty economic calendar as well lower liquidity the cable is expected to remain within the above patterns today. In the meantime, an allocation of pending orders suggests that traders are rather eager to acquire the Sterling, which is contrary to the generally bearish market sentiment. From daily chart perspective, it looks like the pair will make inch higher from the triangle due to support set up by the weekly and monthly PP located around the 1.3370 mark.
Despite adoption of tax reform and release of various macroeconomic data, the British Pound is continuing to trade against the Dollar in a two-week long symmetrical triangle whose upper boundary simultaneously represents the slope of a larger falling wedge pattern. Because of an empty economic calendar as well lower liquidity the cable is expected to remain within the above patterns today. In the meantime, an allocation of pending orders suggests that traders are rather eager to acquire the Sterling, which is contrary to the generally bearish market sentiment. From daily chart perspective, it looks like the pair will make inch higher from the triangle due to support set up by the weekly and monthly PP located around the 1.3370 mark.
Note
GBP/USD still fluctuates in triangleYesterday’s trading session did bring any notable changes, as expected. The Sterling is continuing to fluctuate against the Dollar in a two-week long symmetrical triangle whose upper boundary simultaneously represents the slope of a larger falling wedge formation.
Theoretically, a release of information on the American consumers’ sentiment could trigger a breakout especially if data appears worse than expected. However, this event traditionally does cause high volatility, which means that the cable might stay within the pattern until the end of the day. In larger perspective, there is a need to take into account that market sentiment is rather bullish and larger part of pending orders are also set to buy.
Note
The Sterling has strengthened against the US Dollar during the past two trading sessions. The broadly-based weakness of the latter has allowed the Pound to push above the 1.3440 mark early on Thursday. Thus, the rate was testing the upper boundary of a four-week descending channel. Apart from the given line, the nearest resistance is provided by the weekly R2 located at 1.3473. It is, however, unlikely that the rate pushes this high in this session.
Technical indicators suggest that the strong upward movement should allay, but the Sterling could nevertheless remain relatively stable against its American counterpart.
The most likely downside target for today is the combined support of the 55-, 100– and 200-hour SMAs and the monthly and weekly PPs circa 1.3380.
Note
Thursday’s trading session was rather uneventful for British Sterling, as it remained fluctuating between the weekly R1 and the 1.3460 mark for the whole session. This lack of direction changed early today when bulls gathered enough strength for another surge. The pair’s upward movement during the past few days has resulted in the formation of a narrow ascending triangle. In case the Pound pushes even higher today as suggested by technical indicators, it could find resistance near 1.35 where the upper chanel boundary is located.
On the other hand, the current steep upward movement might allay in the following hours. A failure to reach the upper channel line is likely to be followed by a breakout and a test of the 55-hour SMA circa 1.3420.
Note
Upside risks dominated GBP/USD during the last trading day of 2017. The pair managed to breach the 50.0% Fibo and eventually consolidated near the 1.3530 mark. Technical indicators are in favour of a subsequent surge that would push the rate above its three-month high of 1.3545. The nearest resistance that could halt further advances is the distant weekly and monthly R1s circa 1.3590.
In case the British Manufacturing PMI to be published at 0930GMT does not put an upward pressure on the rate and it thus manages to maintain its movement sideways, this might signal to a soon change in the sentiment.
Possible donwside targets in this session is the 55-hour SMA and the weekly PP near 1.3470.
Note
The Sterling continued to strengthen against the US Dollar on Tuesday, thus ending the day with an 81-pip gain. This session, however, mark some changes to this bullish sentiment, as the pair has been trading sideways in a narrow range below the monthly R1. It seems that this minor period of consolidation could be an early indication to a possile change in the market sentiment, at least for today. In addition, technical indicators are gradually retracing from their high positions.
In general, this session might mark high volatility due to various fundamentals to be released today. A strong support area is located circa 1.3535, while a breakout of the monthly R1 would send the pair for a test of the weekly R2 at 1.3662.
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