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

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