Yesterday saw low volatility
in gbp/usd. 53
pips is a very low daily range for the pair. You know how volatile cable can
get. It means directional move is coming. We have a good catalyst for that and
that is Bank of England interest rate decision that is due at 11:00 GMT today. Of
course, nobody expects an increase (to say nothing of a cut). If that happened
we would probably see a huge gap in price of the exchange rate of the pair.
However, any bullish or
bearish signs in the wording of the statement can send the price to the sky or
to hell. You may see from the chart below that resistance starts at 1.5425 that
marks the low of the 7th of August. Pound bounced of that level at
that point and formed a nice bullish candle. It may play as resistance when the
release comes out. Intra day support is at 1.5338 (today low).
Next level of support would
be 1.5300 area and resistance would be around 1.5490-1.5500 area. If 1.5490 is
overcome the door to 1.5800 (the high of 25th of August) would open
up. Bias is slightly bullish right now.
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