On Thursday the pound reacted to the Bank of England minutes with a growth. The pound/dollar grew by 55 points to 1.5448. From here the rate fell to 1.5391. After weak US data on import prices came out, the pound renewed a 1.5475 maximum. The bulls were able to renew the 1.5412 maximum from 8th September, so the risk for the rate increasing to 1.5562 is even higher. A close of the weekly candle above 1.5436 will cancel out my scenario for a fall to 1.5110 before the FOMC convenes. Today I don’t see the pound going higher than 1.55. There’s one thought that keeps running through my mind: rebound to the LB, rebound to LB…
The pound jumped and is heading for the daily LB. Now one must wait and see where the weekly candle closes. In order to sell the pound, one should wait for a fall to 1.5365. Is that even possible? Yes, since today is Friday and many traders prefer to fix their profit before the weekend.
In every review, I write “… a close of the candle above 1.5436 will cancel the 1.5110 target before the FOMC convenes...” The bulls were able to fully close the body of the previous candle. The buyers just need to close the week above 1.5436 and then not sell pounds for a while.