Market Analytics and Considerations
Key notes
Monday sees the first increase in the GBP/USD rate in three days.
Despite differences in Fed and BoE policies, the US dollar is broadly weaker and supports Cable.
The bulls of the British pound are still optimistic and are aiming for 1.2200.
Bulls trade cautiously under a gloomy market environment as GBP/USD consolidates the recovery below the 1.2200 level on Monday.
Despite the expanding policy disparity between the US Federal Reserve (Fed) as well as the Bank of England, the US Dollar’s general weakness is driving the rise in the Pound Sterling (BoE). As investors pay little attention to the rising Treasury bond yields, the decline in the USD/JPY pair is putting pressure on prices on the US dollar.
Regardless of the rising wedge collapse that was verified the week before, the bullish 21-Daily Moving Average (DMA) around 1.2146 is still providing short-term technical support to GBP bulls.
As the 14-day Relative Strength Index (RSI) rises over the midline, the upside for sterling looks more promising.
The twin Bull Cross validation, in which the 50DMA broke through the 100DMA on the upward and the 21DMA cut the 200DMA from underneath, further supports the recovery.
In order to prolong the rebound beyond Friday’s top at 1.2223, GBP buyers must retake the 1.2200 resistance level. If they do, an additional gain forward towards the wedge assist at 1.2424 will be possible. The very next target on investors’ radars will be the 6 peak at 1.2446.
On the other hand, the sliding 200DMA at 1.2096 will be in danger if the 21DMA cannot be protected on a daily closing premise.
Initiating a fresh downward slope targeting the bullish 50DMA at 1.1755, the latter will be broken below on a sustained basis.
Technical Summary
Summary: BUY
Moving Averages: Buy (11) Sell (1 )
Technical Indicators: Buy (4) Sell (4)
Pivot Points
Name |
S3 |
S2 |
S1 |
Pivot Points |
R1 |
R2 |
R3 |
Classic |
1.2129 |
1.2139 |
1.2150 |
1.2160 |
1.2171 |
1.2181 |
1.2192 |
Fibonacci |
1.2139 |
1.2147 |
1.2152 |
1.2160 |
1.2168 |
1.2173 |
1.2181 |
Camarilla |
1.2154 |
1.2156 |
1.2158 |
1.2160 |
1.2162 |
1.2164 |
1.2166 |
Woodie’s |
1.2129 |
1.2139 |
1.2150 |
1.2160 |
1.2171 |
1.2181 |
1.2192 |
DeMark’s |
– |
– |
1.2154 |
1.2162 |
1.2175 |
– |
– |
Technical Indicators
Name |
Value |
Action |
RSI(14) |
58.218 |
Buy |
STOCH(9,6) |
41.982 |
Sell |
STOCHRSI(14) |
25.507 |
Sell |
MACD(12,26) |
0.013 |
Buy |
ADX(14) |
32.233 |
Buy |
Williams %R |
-53.105 |
Neutral |
CCI(14) |
-14.7189 |
Neutral |
ATR(14) |
0.0142 |
Less Volatility |
Highs/Lows(14) |
0.0000 |
Neutral |
Ultimate Oscillator |
46.862 |
Sell |
ROC |
1.510 |
Buy |
Bull/Bear Power(13) |
-0.0004 |
Sell |
Buy: 4 Sell: 4 Neutral: 3 Summary: NEUTRAL |
Moving Averages
Period |
Simple |
Exponential |
MA5 |
1.2227 |
1.2214 |
MA10 |
1.2245 |
1.2214 |
MA20 |
1.2177 |
1.2127 |
MA50 |
1.1778 |
1.1916 |
MA100 |
1.1673 |
1.1868 |
MA200 |
1.2090 |
1.2129 |
Buy: 11 Sell: 1 Summary: BUY |