Sunday, August 23, 2015

Pound closes below 1.5700 against US dollar



For a number of weeks gbp/usd fails to overcome 1.5700 level. I don’t see it as bearish or bullish; just state the fact how important the number is. There has to be a break at some point: up or down. On the other hand, 1.5688 is pretty close. That’s what the close was in the pair (at least on my charts). By looking at the 4 hour chart below you can see that from the 7th of August cable was clearly making higher highs and higher lows against the greenback. It implies that Pound was in accumulation process and US dollar in distribution. This may not mean the tendency will continue, but it is likely.

Forex news that might impact exchange rate of the pair:

Tuesday: 14:00 GMT US Consumer Confidence
Wednesday: 12:30 GMT US Durable Goods Orders
Thursday: 12:30 GMT US Gross Domestic Product
Friday: 08:30 GMT GBP Gross Domestic Product

In my opinion the pair may broke or reverse from the key level any time at the start of the week without waiting for the above mentioned economic releases. Both FED minutes and BOE interest rates have been announced, so we may expect technical moves at any time next week. 

See with more updates on this Monday.

Higher highs and lows in gbp/usd

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