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Pound/Dollar: W-Shaped Model on Daily

Hourly

The end of yesterday saw the dollar down against the UK pound to 1.5314. Meanwhile, the dollar index was trading in a sideways trend. The pound received support from UK industrial production data which came out better than expected.

On Thursday there are some important events planned for the currency market. First will be the Bank of England’s base rate decision, then the ECB minutes and those of the FOMC. At 21:00 EET the BoE’s Mark Carney is giving a speech.

I didn’t bother making a forecast, but I can say that I see the following taking place today: before the BoE decision is out we will see the GBPUSD down to 1.5285/90 and then a growth to yesterday’s maximum. A pessimist would say that in fact we will see a rebound to the LB and then a flat along the line until Friday.

Daily

Due to a growth in oil prices and positive UK stats, the buyers managed to update the maximum. There’s now a W-shaped model with 1.5164 and 1.5106 bases. If the euro/dollar shoots up, then we can start thinking about a growth for the GBPUSD to 1.5500 (dotted line).

Weekly

The trend line could be broken this week.

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