Luis ForexMart
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GBP/USD Technical Analysis: May 16, 2017
The British pound surged during the beginning of Monday session. The 1.2940 level offers strong resistance but returned to 1.29 handle which is starting to position as a supportive level and the market tries to push the levels higher.
However, traders should expect high volatility amid the ongoing Brexit negotiations. Although, it is anticipated for the currency to improve and exceed expectations with the inflation hints seen recently. Both the CPI and PPP from Great Britain are about to come out that affect trading as a whole.
It would be good to form a long-term supportive candle at 1.29 level or even a breakout is much better. If the price break higher than the 1.30 level, the price could move towards the 1.3450 region as the peak of consolidation that the market is trying to gap. On the other hand, if a breakdown lower than the 1.2850 level, it could bring the price down towards the massive support at 1.2750 are down below.
Nevertheless, there will be high volatility in the next few months with the ongoing Brexit process. Overall, the market gives an uptrend direction while it is best to position long-term orders. Although, traders are dubious on the market.
The British pound surged during the beginning of Monday session. The 1.2940 level offers strong resistance but returned to 1.29 handle which is starting to position as a supportive level and the market tries to push the levels higher.
However, traders should expect high volatility amid the ongoing Brexit negotiations. Although, it is anticipated for the currency to improve and exceed expectations with the inflation hints seen recently. Both the CPI and PPP from Great Britain are about to come out that affect trading as a whole.
It would be good to form a long-term supportive candle at 1.29 level or even a breakout is much better. If the price break higher than the 1.30 level, the price could move towards the 1.3450 region as the peak of consolidation that the market is trying to gap. On the other hand, if a breakdown lower than the 1.2850 level, it could bring the price down towards the massive support at 1.2750 are down below.
Nevertheless, there will be high volatility in the next few months with the ongoing Brexit process. Overall, the market gives an uptrend direction while it is best to position long-term orders. Although, traders are dubious on the market.