Tuesday, September 1, 2015

Pound is Still Falling against US dollar



Despite the fact that gbp/usd move down got slower, it is still going south. It seemed that there was going to be a reversal today. Why? If you look at 15 minute chart you can clearly see that Monday low did not exceed Friday low. It actually resembled a double bottom pattern. However, during European session today the lows was taken out and new low was made. Yesterday lowest point was at 1.5340 while Friday low stood at 1.5335. Now American session is in full swing and the lowest level today is 1.5304. The fall may continue further.

The best play for such market is, of course, selling rallies. Such an opportunity presented itself right on the London open. Three arrows on the chart indicate a reversal, which shows that counter trend rally is over and price is about to move down again. It is also obvious that 200 ema acted perfectly as a resistance level on 15 minute chart. Just look at those candle pins to see for yourself. 

Neither data from UK, nor from US could stop cable from collapsing. Well, more important news is coming at 14:00 GMT when ISM Manufacturing from US is released. Trade only from the short side till you definitely see a trend change.

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