This analysis includes the price movement of the British Pound against the US dollar on the weekly, daily, and four-hour frames, and expectations about the future movement and market direction
On the daily time frame, the sterling is still in a general bullish trend.
The bounce from 1.42700 and 1.43872 areas was expected because it is a resistance area under which this pair has been trading since 2016 and visited it in 2018 and bounced downwards, and this year it also reached twice and bounced back from it.
The bounce is not negative yet; it is only corrective for several reasons:
1-The bounce in a fluctuating manner indicates the weakness of the bearish momentum.
2-The bounce forming a triangle, it is a continuation pattern usually in the financial markets.
On the four-hour time frame:
Arrives at a bullish zone between prices of 1.36288 and 1.35944.
In yesterday's session, the sterling headed up and breached 1.36927 as confirmation of the change in direction from bearish to bullish, but in the short term.
A retreat can take place in three stages:
-The 50% level of the Fibonacci tool is at 1.36804.
-The 61.8% level of the Fibonacci tool, which is at a price of 1.36647.
-The 78% level of the Fibonacci tool, which is at a price of 1.36430.
In the event of a breach of the last high that was recorded at the price of 1.36101, the positive scenario will be canceled, and we are waiting for the breach of the support line area to take negative signals again.
Sterling economic data:
- Bank of England Monetary Policy Committee member Silvia Tenreiro will make a speech.
-Net speculative positions on the pound sterling with the Commodity and Futures Trading Commission.
Tags : GBP-USD