The British pound lost 107 pips against the dollar. The session was opened at 1.2736, and prior to noon the bulls scored their peak at 1.2757. This was the turning point of the day, as the bears broke the support at 1.2690, bottomed at 1.2602. At the end of the day 1 pound was exchanged for 1.2629 US dollars.
The British Pound attempted to offset the loss from the previous day by adding 43 pips to its asset against the dollar. The opening quote for the day was 1.2628, and before noon the bears recorded their bottom at 1.2589. There was a rapid response from the bulls and the course broke the resistance at 1.2690 to reach a peak of 1.2671. Bulls did not have the strength to keep the course over the resistance, and at the end of the day a pound was exchanged for 1.2671 US dollars.
GBP/USD bounced off from 1.2590, but considering the doji candlestick and the shooting star candlestck that it has formed on the four-hour time-frame at 1.2680 it may test the aforementioned support at 1.2590 once again.
GBP/USD printed a weekly low of 1.2589 on Wednesday before BoE Chief Economist Andy Haldane’s hawkish comments pushed the pair higher to 1.2710.
UK Prime Minister Theresa May’s visit to Brussels failed to move the pair in a big way on Thursday. The spot traded around 1.27 levels in the Asian session today. The weekly 50-MA offers support at 1.2660.
Bearish exhaustion below weekly 50-MA For three weeks now (including this week), the sellers have failed to keep the pair below weekly 50-MA. On the weekly chart, we clearly candles with long tails below the weekly 50-MA, suggesting dip demand/bearish exhaustion.
The British pound was up against the US dollar on Friday. By the close of US trading, GBP/USD was trading at 1.2719, gaining 0.29%. I believe that support is now at the level of 1.2587, the minimum of Wednesday, and the resistance is likely at 1.2817, the maximum of Monday.
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