The pound gave up most of last Friday’s gains in today’s New York session. After flirting with 1.5200 last week, the pair is now back just above 1.5000. There seems to be no apparent reason for the down move, but we can assume that speculators profited from the retracement to open new short positions.
Looking at the hourly chart, we see a support trendline which has been forming ever since the dip down at the beginning of the month.
A new trading opportunity arises. We watch for a break down below the trendline, which would open the way for a re-test of 1.4850.
The Bollinger Bands “choking” and breakout pattern also suggests the price will continue its way down.
We notice the importance of the 1.5000 level where price found support at many occasions during last week. However, it is safe to assume that many stop loss orders are located right below it as a result of new long positions opened during last Friday’s up move.
All information on this page is subject to change. The use of this website constitutes acceptance of our terms of use. Please read our risk disclaimer and privacy policy
