FxWirePro: Cable Edgy at Resistance 1.4385 - Major Trend Still Intact As No Traces of Recoveries from Trend and Momentum
Breaks resistance at 1.4385 levels but sustenance is questionable, but don’t jump into conclusion wait for confirmation.
But for now, the bulls seem to be exhausted on minor resistance at 1.4385.
Day highs were also not able to sustain and has rejected resistance at 1.4385 levels.
Cable has been closely observed as has reached a supply zone at 1.4385 and there would either be range bounded swings where upper band is 1.4385 which is maintaining as a resistance point while 1.4229 on south.
RSI: Currently, RSI (14) trending at 54 levels converging according to the price fluctuations as there is no clarity about the trend form this oscillator, on closing basis movement should be closely watched if it suggests downward signals.
Stochastic: The slow stochastic curves reach overbought trajectory but still no overbought signals have been generated.
But one who has been following long term bear trend, the major trend seems robust the current prices on monthly graphs have remained well below EMAs and 21EMA crossover over above 7EMA signals prevailing bear trend continuation.
While, other lagging indicator MACD has slid into bearish territory with a bearish crossover.
Hence, we would foresee GBP on weaker side after unemployment rate in the U.K. We’ve shifted back to the top of the recent range as UK’s claimant count change and unemployment data announced today, Change in the number of people claiming unemployment remained at 6.7K -related benefits during the previous month, while unemployment rate remained unchanged at 5.1%.
Sterling rose to April highs against the weaker dollar, with the U.K. currency’s value considered a leading barometer of market fears over Britain exiting the EU this summer.
Subsiding, though still elevated, Brexit risk buoyed the pound, a gain that saw added traction as GBPUSD followed in the stronger EURUSD’s footsteps.
To conclude, as a result of above technical and fundamental incidents we see more weakness in the weeks to come, one can initiate shorts in near month futures of this pair for bearish targets towards 1.4229 levels.
The material has been provided by