Wednesday, August 26, 2015

200 sma acts as support in Pound US dollar pair

200 sma on the hourly chart of gbp/usd again acts as support. You can clearly see from example below that since the 18th of August, price turned around and went up after it had hit the indicator. This indicates that there is bullish bias in the pair and buying pressure may resume the fourth time too. Of course, this time price is below our key level of 1.5700 and there is no guarantee that the uptrend in cable will continue, but if I see any signs of reversal I will surely buy Pound. 

On the other hand, the top on the pair may have been reached and it will head to 1.5400 or even to 1.5200 area. Key fundamental data that might impact price direction is to be released at 12:30 GMT and that will be US retail sales. A more positive than expected number can sink British Pound. On the other hand, worse than expected data will put pressure on US dollar and it will fall. I am slightly bullish at this point, but that can change any time. Anyway, let’s wait for US session to see what number we get with US retail sales. 

200 sma on hourly acts as support

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