The decline of the dollar supported the pound sterling, which reached a peak of six weeks, while investors predicted that the British High Court later on Tuesday will make a decision about that to start formal negotiations on the withdrawal from the European Union the government needs the approval of Parliament. The pound reached a high of $1.2538 - the maximum against the dollar since December 15, but then fell slightly to $1.2505.
The pound recorded significant increase against the dollar on Monday. The session started at 1.2375 and ended at 1.2533. After steady upward movement the price managed to break the first resistance at 1.2516. If the upward trend continues we can expect a test of the next resistance at 1.2700.
The dollar was trading close to a 7-week low against a basket of other major currencies amid lingering market concerns about the protectionist policies of Donald Trump. The weakness of the dollar reflects concerns about the uncertain economic Trump policy, as well as fears that his protectionist stance can reduce corporate earnings and become a brake on economic growth. On Monday, Trump has initiated a formal process of US withdrawal from participation in the Trans-Pacific Partnership (TPP). It separates the United States from its Asian allies. Trump also announced his intention to renegotiate the North American Free Trade Area (NAFTA) with Canada and Mexico to the conditions more favorable for the United States. The pound fell slightly against the dollar. The pair GBP/USD slipped by 0.34% to 1.2488.
Pound's upward trend has suffered shortly, the pair is consolidating after UK Government lost Supreme Court case over Article 50. Next resistance level can be found around 1.2550, break above upward trend might extend further.
GBP/USD finally broke above the (MA)89 indicator on the daily time-frame despite the hanging man candlestick it had formed below it on the same time-frame. The move to the upside continues, next target is likely 1.2600 - 1.2620.
exit 1: near 1.2550 exit 2: near 1.2650 exit 3: near 1.3060
Exit 1 has been reached and prices are headed toward exit 2.
When trading major entry signals on long-term charts like the daily or weekly, it is important not to look at short-term intraday charts, as the temporary counter-trend can be very distracting and often causes a trader to exit much too soon. Instead, it is better to look at one time frame slower than the one that is traded. In this case it is the weekly chart. The weekly chart is in congestion with the current bar being nr. 17. which is the first bar to trade out of congestion (congestion = bar 11 through bar 21) in any time frame. There is a gap open at the high of the measuring bar @ 1.2945 A measuring bar (MB) is a bar, where all following bars have either the open or close price (or both) within the confines of the high and low of it. In this case, the MB is the bar from October 2nd of last year, counting 17 bars back, starting with the current bar of this week. Historically, major entry signals on long-term charts have a 90% success rate, and therefore a higher risk can be taken.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.