GBP/USD riding with the bears of the dollar, focus on 1.2920/60

Currently, the GBP/USD is trading at 1.2902, 0.43% on the day, after you have recorded a daily maximum at 1.2918 and minimum at 1.2839.

The GBP/USD has been trading in a chop inside and outside the supply area of 1.29 in the european operation late. The pound is sensitive and could be moved with force when he gets going, and that is exactly what we have seen in many of the sessions late. The main crutch for the bulls comes with a renewed positive feeling around the call of the prime minister, May, for an election early. This underlines the possibility that the negotiations are in favor of the United Kingdom, with Westminster and the nations behind Brexit presuming that the conservatives will win of course.

There were No real leads behind the sudden decision that was joined to new highs of several months in the area of 1.29 and the highest level since early October of 2016. Simply, the momentum of the fall of the dollar during the night (Trump NAFTA/tax plan related) cemented the rise of the pound sterling at 1.2860, while the DXY fell from the highs of 99.3310 to 99.10.

Data from the united States have been mixed, although durable goods were lower than expected and will have a weight on the dollar. In respect of housing, “we Hope that the housing supports the economic growth in the first quarter that residential investment will increase at an annual rate of 10.5 percent in the first quarter”, explained the analysts of Wells Fargo.

Levels of GBP/USD

The outlook is bullish in accordance with the reading techniques of Valeria Bednarik. «The pair has scope to accelerate above 1.2920 towards 1.2960 first, and 1.2710 until later in the day, if the greenback continues to hold,» he explained. «In the 4 hours chart, the technical indicators have lost momentum, but the RSI remains around 70, while the SMA of 20 wins force towards ascending below the current level, providing support at 1.2830.»

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