After the pair almost reached a historical low on 29th January 2016, which has only been reached three times in the past twenty years, the pound bounced off the support at 1.38350 and started rising again.
As you can see on the weekly time frame, the pair broke above the resistance at 1.44 visualized by the middle line of the Bollinger Bands indicator with ease and started rallying towards the next resistance level at 1.49.
It is still difficult to predict what the pound will do – whether it will continue rising towards 1.50 or the range will start again, so it can test the previously reached low. For the moment the trend is obviously bullish and it is a good idea to look for suitable entries for long positions on the smaller time frames.
Very helpful analysis, thank you.
ReplyDeleteGood analysis.
ReplyDeleteLet's wait for the FOMC meeting later today.
ReplyDeleteIt seems downside movement might continues.
ReplyDeleteInteresting post, thank you.
ReplyDeleteAs always, well explained.
ReplyDeleteVery helpful and insightful analysis, excellent.
ReplyDelete