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Pound Caught at LB

Hourly

Despite a rise to the 1.5675 resistance (see daily graph), the pound/dollar has returned to the LB line. The FOMC meeting took place and now the focus has shifted to US GDP. I’m expecting a depart to the 45th degree on the European session and a fall to 1.5550 after the American stats are out. That’s how I see it.

Daily

Seller activeness was low before the FOMC meeting and so the buyers managed to take the rate up to the 1.5675 resistance (15th July maximum). By renewing the maximum, the pound cheapened to 1.5592 (current rate).

For me, the situation is still uncertain since one can see the forming of a triangle and a W shaped pattern with an upward distortion. In the first case the buyers will be hit and in the second it’s the sellers that will take the heat.

Weekly

On the weekly graph we can see a three-week flat. We just need to wait for a break in the 1.5450-1.5686 limits.

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