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Pound/Dollar: Expected Consolidation in Wide Range

Hourly

Due to the euro, the pound had a volatile day. The pound received support from the euro/pound cross throughout the day when the ECB’s Ewald Nowotny spoke. The pound fell after the US stats came out in the evening. By renewing the minimum, the price returned back to 1.55.

The pound stabilized at 1.5470. With such a movement pattern, we could see either a fall or a rise. I’ve gone for a fall to 1.5420 to 1.5470. The daily trend line hasn’t been broken.

Hourly Graph

Daily

The bulls have renewed the maximum, but they couldn’t strengthen beyond the trend line. Today the situation will depend on the euro. If the euro/dollar shifts downwards, the pound/dollar will u-turn downwards, following the euro. If the euro starts to recover, the pound bulls will have a foothold to push the price to 1.5630. This is where the overall trend line is.

Daily Graph

Weekly

The bulls will hold the rate close to the trend line at 1.5630.

Weekly Graph

Attention:

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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