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Pound/Dollar: Expected Return to LB

Hourly

The forecasted target was reached on the European session. The forecast didn’t coincide with the actual price movement along the wave structure. The pound/dollar dropped to 1.4993. Due to a fall in the euro/pound, the pound/dollar rebounded from a 1.4993 session minimum.

The pound renewed by one figure to 1.5097 as part of a correction. The price dug its heels into the resistance which had formed from the 1.5135 and 1.5126 peaks. Taking the state of the hourly indicators and Carney’s speech into account, I expect to see the GBP/USD recoil by 45 degrees to 1.5035.

Daily

The bears broke the trend line on Friday. On Monday they tested the solidity of 1.50. Everything went well, but the day closed badly. I don’t quite like the look of the hammer that formed. A close of the day above 1.51 will result in a false break.

Weekly

The monthly candle has closed down. The weekly timeframe is also currently indicating a further fall for the pound.

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