The UK pound does not cease to astound me. On Friday it was down before the Greek referendum and on the back of strong statistics, yesterday it grew to 1.5627 from nothing. I don’t even want to try and understand what’s going on with these anomalies. Although, I do understand that things don’t happen for nothing. Saying that though, I have no explanation for this behavior.
The pound/dollar is trading at 1.5593. According to the price pattern, I should forecast a growth to 1.5665 after a slide to the LB. However my line is going downwards. I can’t explain this either. I must be adjusting my forecast, keeping in mind the weekly indicators which are saying the pound is on its way down. According to the forecast, I’m looking at a fall for the pound to around 1.55.
The pound/dollar is continuing to trade by the trend line. On Monday the pound jumped away from it, but it’s a little early to say if this movement was a recoil. To confirm this, yesterday’s maximum needs to be broken.
The stochastic and the CCI are indicating a fall for the pound. My target is 1.5385.