My expectations for the pound rang true. The pair renewed its maximum and then weakened to 1.5157. At the moment of writing this review, the pound is trading around 1.5175.
On Tuesday trader attention is on UK, German, Eurozone and US data. The Bank of England’s Mark Carney has a speech planned for the evening and during which we could see high volatility for the pound and euro. Wednesday will see the US Fed’s Janet Yellen give a speech and on Friday the market will get a look at US labor market stats. Since the key pairs are moving all sorts, this swinging is due to continue for today.
I’m waiting for a renewal of the pound to 1.5211. What will happen after Carney’s speech is anyone’s guess.
The pound has not yet managed to pass the trend line. Taking the recoil on the euro/dollar into account, it’s likely that the pound will bounce off it today. Carney will give a speech this evening and he could send the pound/dollar to below 1.5135 or up to 1.5280.
A break in the trend line needs to be looked at for the candle’s close. On the daily the sellers couldn’t strengthen below it. Between the daily and the weekly time frames there’s a contradictory picture on the indicators.