Due to a falling dollar and growing euro, the pound/dollar has renewed to 1.5363. The growth stopped around the U1 line under 112 degrees and under the daily trend line. I don’t have it on this graph, since MT4 distorts the lines from old timeframes.
From today’s news it’s worth picking out the data on the UK’s balance of trade and GDP for the Eurozone. On the forecast I’m considering a fall to the LB (1.5297) for the pound. The situation has significantly deteriorated for the sellers because a double bottom has formed on the daily. A break in the trend line and a maximum of 1.5440 will open the road to 1.5813. Let’s have a look at the Daily tab.
The sellers couldn’t manage to hold on to their hard-fought gains from Friday. The price returned to the trend line. The only thing left is to wait for either the subsequent transformation of the double bottom into a triangle, or for the pattern to come off. I’ve not much else to add here. Let’s have a look at the Weekly tab.
After the previous doji, the buyers went on the offensive. Do they intend to keep it up? We’ll find out today. If the trend line is broken on the daily, the pound’s growth will hasten. The weekly indicators are still looking downwards.