The absence of a clear Brexit strategy continue drive the pair down, limited upward correction movements while Gbp/Usd is still holding above 1.3000 psychological handle.
The pound marked a second successive session against the dollar on Tuesday. The British currency has continued the positive momentum since the beginning of the week, but no breakthrough of key levels has been achieved. Short-term expectations continue to be in favor of the pound. Trading was open at a rate of 1.3140 and the final was 62 pips higher. The trend was bullish in most of the time, with the peak reached at 1.3225.
Key levels to watch for:
Support: 1.3014; 1.2955;
Resistance: 1.3290; 1.3326;
The GBP / USD continued its bullish momentum yesterday, reaching a peak of 1.3225, with the market respecting the daily EMA 200 and the trendline support line. Short-term expectations are bullish to test the resistance 1.3330. A clear breakthrough and daily closing over it will put an end to the downward correction phase and will re-activate my bullish model for retesting 1.3615. Support for the day is 1.3150, whose breakthrough should keep the bearish phase in force for testing the daily EMA 200 and the trendline support.
Pound / dollar was tentative yesterday, but mainly continues to trade higher and hit a new weekly peak at 1.3264 earlier today. Trade signals remain bullish for testing the key resistance 1.3330. A clear break and daily closing above this level will put an end to the downward correction phase and will re-activate my upward model for retesting 1.3615. The nearest support is at 1.3150. A clear breakthrough and daily closure below this level should keep the bearish phase intact for testing the daily EMA 200 and the trendline support. Generally, I stay in the bulls camp.
Somehow insecure, i'm staying away for now.
GBPUSD FOR NEXT WEEK:
S: 1.3246 - 1.3216
R: 1.3366 - 1.3420
Risk remains on the upside, Gbp/Usd consolidate just below 1.3300 level. This week all focus on the EU summit and Theresa May's 'emergency' trip to Brussels on Monday.
The single currency recorded an increase against the US dollar on Wednesday. Session started at 1.1765 and the price bounced back from support at 1.1735. After all, the euro ended at 1.1786 and if the price continued to rise the pair would head to the first resistance at 1.1910. Otherwise, in the downside, we may expect a breakthrough in support at 1.1735.
The pair lost some gains this week. I think the bullish run will continue.