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ECB, Set, Launch, New, QE, Programme, European Central Bank, QE programme, fx trader, forex, Currency Analysis, Currency, Analysis, EUR, USDSource: IT charts

The GBP/USD pair made a bounce off 12-month lows 1.4688 on Monday and promptly hit resistance at 1.4838. As the pair sits firmly back inside an 8.5-month falling channel, will Monday’s support level hold? To the upside the bulls will be eyeing a breach of 1.4976 and the 100-day moving average to signal the beginnings of a recovery. A further probe up towards the 200-day moving average will get them excited.

With all moving averages stacked up bearishly, MACD showing similar, momentum heading more negative and a nonetheless range-bound pair at the time of writing, a lack of further downside seems to indicate some ‘waiting in the wings.’ The near-term outlook will almost certainly be dependent on Wednesday’s macro-economic announcement in the US when a substantial change in position should be expected, hike or no hike. Only a certified ‘Toro Bravo’ would take this on before then.

Augustin Eden
Research Analyst
Accendo Markets

 
CFDs, spread betting and FX can result in losses exceeding your initial deposit. They are not suitable for everyone, so please ensure you understand the risks. Seek independent financial advice if necessary. Nothing in this article should be considered a personal recommendation. It does not account for your personal circumstances or appetite for risk.

 

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