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Sterling Technically Readying for a Drop from U3 to D3

On Friday the GBPUSD returned to the upper limit of the MA channel (U3 line) due to the American dollar falling. A test of the LB, 1.4792, puts a further fall for the pound into question. It’s seems that traders are closing long positions on the dollar.

Since this morning, the key currencies are active. It’s not worth talking about these movements. I wouldn’t rush to any conclusions about the Asian session. Though, I’m not excluding that market participants will work back the Friday fall of the dollar and bounce it back through purchases of the currency. On Monday the prices often move against their Friday’s movements, so I’m basically looking at a drop to 1.4780. Sterling is technically readying for a drop from U3 to D3.

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