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Pound/Dollar: Expected Fall to 1.5440


Representatives of the world’s central banks are continuing to scare market participants with their contradictory comments on monetary policy and in doing everything possible so as to not let their national currency strengthen.

On Friday, the Bank of England’s chief economist Andrew Haldane announced that the UK could see its base rate lowered further. On Monday the Bank’s J Cunliffe announced that the base rate in the UK is most likely to be put up.

The pound/dollar is down to 1.5480. After a fourteen-hour consolidation, it could be worth expecting new sales of the pound and a fall of the currency against the dollar to 1.5440. Taking into account how the euro fell yesterday, the pair could quite easily head for the D3. The pound held on on Monday due to a fall in the euro/pound cross.

Hourly Graph


On Monday the pound was down, but is still trading in an upward channel for the moment. A break through 1.5460 will see stops on long positions kicking in. If the sellers join in with a break in the trend line, it’s likely that there’ll be a hasty fall to 1.5355 within 2 days.

Daily Graph


The picture is still unclear, but we can see that the weight has started to tip in favour of the sellers again.

Weekly Graph

23 September, 08:10 (GMT+3)
Euro/Dollar: Expected Correction to LB


Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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