Is the Pound Dollar facing a multi-year trend change?
A nightly level occurred in the United States when two other Republican senators announced they were withdrawing their support for Trump’s health reform, effectively eliminating the president’s chances of passing the reform he has promoted in recent months. For his ability to carry out other reforms such as tax reform or regulatory reform. The latter two were a major part of the big rally in the stock markets after Trump took office.
The initial reaction is in the foreign exchange market, where the dollar drops 0.45% against the euro to a 14-month low, completing a 10% appreciation against the US currency since the beginning of the year, also Australian Dollar high as boosted by hawkish RBA minutes, Pound Dollar set also new record on 1.3120 this morning
What the next move ……
We have a burglary or is it right for us to surprise?
On the one hand, all the traders are in a long dollar position that usually leads to a surprise in the other direction
However, on the other side, there is a very strong resistance area here
I will focus on Pound Sterling – Technically seem very interesting
Technical analysis on the pound dollar
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| GBP USD |
Expect strong resistance below 1.3300 to bring larger down trend resumption, while we have first to meet 1.3080. On the downside, break of 1.2840 support will indicate short-term topping. If it will fail to stay above the level it will be turned back to the downside for 1.2640 supportThe current upside target for GBP/USD comes in ahead of this key resistance level, at approximately 1.3260- a break above this level will test the trend for the GBP USD , This target was derived from the resistance (white band ) through all his decline from 1.57_+ area – mark on the chart below
As of today writing the post, the pound is dropping from the 1.3120 level almost 100 points to the 1.3020 area, Do we have a summit?
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| pound dollar analysis |
Last thing I want to focus on its the COT position trade report
I would like you to pay attention to the movement of the pound in relation to the positions – the whole decline of the pound against the dollar from 1.7 to the present and the lowest in the region 1.19
Is this movement facing a major change or will it continue?
In my opinion, there is a convergence on the position of the positions in relation to Spearid and between all the factors that trade on the pound, which also must fit in with the level of the graph, the move that we saw in the pound sterling or is about to end, The low of 1.20 area
The answer will not be long in coming, and we must put good-heartedness both in the position of the positions and in the price – this time they both fit into a strong move !!!
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| GBP USD position |
This review does not including any document and / or file attached to it as an advice or recommendation to buy / sell securities and / or other advice