The Pound soared on Thursday, which brought the GBPUSD pair back to the psychological level of 1.30 and the Sterling is now trying to settle above this level. It was seen at 0.25 per cent stronger during the London session on Monday.
The next resistance for bulls is at the 100-day moving average near 1.3040 and if this level is broken, the trend might switch back to bullish, at least from the short-term point of view. Another area which could be worth paying attention to at the short-term bearish trend line, could be slightly below the 1.32 mark.
On the other hand, the support for today’s trading could be at 1.2920. For this positive outlook to be maintained, the Pound needs to stay above this level.
The major support remains at last week’s lows at 1.27 and it seems like this could be a double bottom formation on the daily chart. If the Sterling receives a positive boost from an unexpected soft Brexit deal, the resistance of this pattern could be at 1.33, with the potential of this formation toward the 1.39 level.
The Dollar index failed to push to new cycle highs and slid from the 97.00 level, which could boost the Sterling over the next couple of days.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Telerade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Telerade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.