On Tuesday the pound/dollar renewed to 1.5412. It went too high to correct. Information about merger/takeovers has a real effect on the currency in which they are paid in.
All crosses were on the buyers’ side. The U3 line and the 180th degree stopped them. Now the rate is trading around 1.5377. I’m inclined to believe that 1.5412 will hold its ground. A renewal of the maximum is possible since the stochastic is facing downwards, however on the forecast I’ve set myself for a closing price of around 1.5340/50.
The GBP/USD has risen to 1.5412. Yesterday I wrote that whilst the GBPUSD is trading below 1.5436, we’re talking about a correction. A jump to 1.5450 is possible and in which case I’m waiting for a return of the rate to 1.5200. The pound’s decisive day this week is Thursday when the Bank of England is due to convene.
A close of the weekly candle above 1.5436 will cancel the 1.5110 target before the FOMC convenes.