Tuesday, August 18, 2015

Pound does not show signs of reversal against US dollar



I did expect gbp/usd to be reversing around the beginning of London open today, but that is not happening. Well, London has just opened so we still have some time for that to happen. The pair currently sits on 200 sma on 4 hour chart and may reverse any time. If it proceeds falling next logical level of support is the low of August 12: 1.5534 level. Below that should be an even number of 1.5500. 

If price does not reverse within 90 minutes we shouldn’t be waiting for a reversal before US session begins. Intra day resistance starts at 1.5600, followed by 1.5620 and then by 1.5640. 

Long term trend is down; intermediate up and short term is neutral. We need to wait for key levels to be reached before start taking bigger positions. If no signs of turnaround are present positions should not be taken. 

There is a high chance that price will keep bouncing between 1.5540 and 1.5690 levels before FED minutes are released. All majors could get a boost from the event and develop some sort of directional bias. 

Anyway, these are my morning thoughts on Pound/US dollar pair. 

Possible support in gbp/usd (1 hour chart)

No comments:

Post a Comment