Clues: The Asending triangle formation of the Pound technically is a bullish Sign. However with a few bolts that need to be nailed into the euro, we should antispate a break to the the down side.
GBPUSD MONTHLY
A break above the 1.6800 level which is a 50% retracement of the of the 2008 finanical crisis meltdown
could see a test of the Upper retrracement level of 61.8% just above 1.7500 the double top at 1.6800 will play a hugh role in any upside momentum in the the pound.
On the weekly chart, the Pound found support just above 1.5300 level which looks like an uneven head and shoulders formation. This a bearish indication, and a break of the supporting levels
will support an out look for a stronger dollar.
If we fail @ the support 1.5300 expect futher range trading at a rise back to the lower mids of 1.6180, the latter being the top of the ead and shoulders .
GBPUSD WKLY
In conclusion with the bank of Engalnd supporting further QE (Quantitative easing and the International Montery Fund revising uk growth to 1.1% from 1.6%, we find it difficult to see much Upside if any
Importantly, a sovergin downgrade of the uk could be the tipping point that sends the sterling Lower.
Daily Chart
4hr Chart
No comments:
Post a Comment