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Pound/Dollar: Expected Rebound from Daily Support

Hourly

Carney and Haldane aided the pound to pass exactly as I forecasted. My euro expectations didn’t come off, since the euro pound cross rose due to active pound sales.

The Bank of England’s Mark Carney announced that the interest rate for the country will remain low for some time. The Bank’s economist Haldane announced that the risk balance for the UK economy and inflation is skewed downwards.

The pound/dollar has fallen to 1.5054. The price in Asia returned to the LB at 1.5114. There is divergence between the AO and the price. The euro/dollar was up on Tuesday. For Wednesday, I’ll risk saying that we’ll see a rise in the pound to 1.5140 after a correction to 1.5070/75.

Hourly Graph

Daily

On Tuesday I believed we would see the pound fall to 1.5065/75. The GBP rate against the dollar fell to 1.5063. The rebound was right off the support. I don’t expect to see a fall lower since Thursday is a holiday in the US. I think that some traders will want to close their short positions near the support.

Daily Graph

Weekly

The 1.5065 level was not passed. I expect to see a strengthening of the pound today before tomorrow’s day off in the US. Then we can once again look for a fall in the rate.

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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