The British Pound was up against the US Dollar on Friday. By the close of US trading GBP/USD was trading at 1.2174, gaining 0.12%. I believe that the support is now located at the level of 1.2036, Wednesday's low and resistance is likely at the level of 1.2318 - the maximum of Thursday.
The pair is trading in a relatively tight range around 1.20/21 after a big gap, but Pound is very fragile and highly dependable on political factor, all focus on May tomorrow. I'm expecting further decline, next target will be at 1.1900 zone.
The GBPUSD had a bearish momentum yesterday bottomed at 1.5359. The bias is bearish in nearest term especially if price able to make a clear break and consistent movement below the H4 EMA 200 located around 1.5370 targeting 1.5300 or lower. Immediate resistance is seen around 1.5400. A clear break above that area could lead price to neutral zone in nearest term but key resistance remains around 1.5505 area which remains a good place to sell with a tight stop loss. We will have some high impact news from the UK today: BOE inflation report, MPC official bank rate votes and monetary policy summary.
Bullish on GRPUSD Bearish on EURGRP
"If you are makeing less than 500% a month you aren't doing it right!"
Quite a rally for the pair recently after May's speech, indeed! Like a roller coaster falling down fast and now back up breaking the strong resistance level at 1.2310 and moving further upwards. MACD is close to the zero line while momentum is very bullish.
The pound recorded a powerful increase against the dollar on Tuesday. British currency registered its biggest one-day rise in nearly a decade. So resistance at 1.2314 was breached and the pair made a test on the second level at 1.2425. Short-term expectations remain in favor of the pound. Trade was opened at a price of 1.2044 as bulls guided currencies from the beginning. The rally of the pound strengthened after the statement of Theresa May on Brexit votes and so the closing price coincided with the highest value for the day - 1.2414.
Yesterday's gain seems short-lived, the Pound has pulled back and risk remain towards the downside, next resistance level can be found at 1.2200/2190 zone. Uncertainty is still high, many unknown still ahead of us.
Pound/dollar has strong momentum down yesterday, formed a bottom at 1.2253. Currently the price tests 1.2270 resistance. A clear break above this level will take price to neutral trading zone testing 1.2400. The bias is neutral, possibly with slight bearish signals in the short term to test 1.2100 - 1.2080. Immediate support is seen at 1.2200.
Think it will stay rangebound in 1.22 - 1.24 for a while. There is strong fairly strong resistance found just above 1.24, and just below 1.22 after all. And there isn't much major stuff to push the GBP on either side coming up.
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