Sunday opening in gbp/usd pair was marked
by two false breaks. The pair initially gapped down, then recovered and made a
false push upwards over its Friday resistance point. Gaps are the norm on Sundays;
therefore it is advisable not to have open positions in any pairs over the
weekend.
I do expect Pound to stay
volatile this week and 1.5700 resistance level to be attacked. However, it is
smart to wait for European session to begin on Monday and find better areas for
entering long or short positions.
Support is around 1.5570 and
resistance any number above 1.5660.
The pair is slightly biased
to move upwards. A convincing move below 1.5400 level would negate the bias. If
broken upwards the next level of resistance lies around 1.5770 level, followed
by 1.5900. If this area is broken we will see 1.6000 even number under siege
sooner rather than later.
Market participants have
expected rate hikes from BOE, but it seems to me we may expect FED to start
hiking earlier than the Bank of England. If that is the case, US dollar might start
gaining strength against British Pound at 1.6000 and the low of 1.4564 will
come into play. This has yet to be seen.
gbp/usd 15 minute chart
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