On Monday the amount of trading going on was less since the markets in the UK, USA and Germany were closed in connection with holidays. The second half of the day couldn’t find any buyers for the pound. The pound/dollar grew at first to 1.5506 and then fell on the American session to 1.5455. In Asia the bears managed to set a new intra-day minimum at 1.5430.
Pressure on the pound was mounting due to the dollar rallying throughout the market: because of this I’m looking at a continuation of the pound’s fall throughout the market on Tuesday. Today’s target is 1.5409.
After a break in the trend, the pound/dollar rate slid to 1.5430. The 1.5445 minimum from 19th May has been broken. Now the road is open to 1.5220/10. By that time the LB line will tighten up to 1.5210 and form a strong support.
The daily AO indicator is showing a fall for the pound. The weekly stochastic has turned downwards. The CCI indicator is crossing +100 downwards (closure of long positions). A powerful wave of sellers is gathering pace. Target for the pound: 1.5183 (45 degrees).