As it usually happens, GBP/USD reached the strong support marked by the middle line of the Bollinger Bands indicator on the weekly time frame, which is at a seemingly unimportant level at 1.2635 – 1.2638.
After a relatively short range the pair rallied today after the news that the Bank of England kept its interest rate as it was at 0.25%, which served as a catalyst for a 100 pips rally over the course of just five minutes. So today GBP/USD moved to the upside from 1.26916 to 1.2795 in a matter of minutes.
From a technical analysis point of view now there are only two scenarios:
-A renewal of the rally to 1.31 and the strong resistance marked by the diagonal trend line in red.
-Or, after a consolidation around the weekly support, the pair may test the resistance of the triangle it broke out above.
This pair, however, has been strongly affected by the political situation in the UK in recent months, which direction the market will pick depends on that.
It's consolidating sideways for now.
ReplyDeleteEnjoyed the article, thank you.
ReplyDeleteVery helpful assessment!
ReplyDeleteGood post!
ReplyDeleteGood insight.
ReplyDeleteVery good analysis.
ReplyDeleteGood point! I´ll be watching to those levels.
ReplyDeleteGood point.
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