|Day's Range||1.27 - 1.275|
|52 Week Range||1.2663 - 1.4377|
The British pound has been rather volatile during the week, but when looked upon on the weekly chart, you could say that this week has been a bit of a victory. I direct your eyes to the month of May in 2017, when we formed several hammers at this level. The fact that we formed an indecisive candle for the week is a ray of hope in what is an otherwise bleak market.
The British pound rose slightly during the day on Friday, reaching towards 1.2750 level and quiet trading. This is an area that of course is important, as it is not only psychologically important, but it has been structural support in the past, making it structural resistance now.
The Euro rallied slightly higher during the Thursday’s session reaching towards the 1.14 level but due to the presence of strong resistance above, the market rolled over a bit. The British Pound initially tried to rally above the 1.12750 level in the yesterday’s session but failed in its attempt and rolled over. The AUD rallied during the yesterday’s session but later in the day sellers are seen getting involved pushing the price lower.
The GBPUSD pair remains range bound despite USD sell off in broad market as investors focus remain on Brexit proceedings on last trading day of the week with No-deal Brexit scenario becoming highly likely each passing day.
The British pound initially tried to rally during the day on Thursday, perhaps in reaction to the idea of the Chinese coming to America and it was more of a “risk on” day than originally thought, but at the end of the day we still have the Brexit concerns when it comes to the British pound, and we have broken down through a significant support.
While inflation numbers are due out of the Eurozone and Canada, it’s all eyes on the U.S Dollar, with the markets getting ready for U.S – China trade talks.
Investing.com - The dollar was flat against its rivals Thursday, pressured by a bout of mixed U.S. economic data and improving risk sentiment after the U.S. confirmed trade talks with China would resume.
Investing.com - The dollar eased against a basket of the other major currencies on Thursday, but was supported near 14-month highs amid ongoing concerns over Turkey's currency crisis and fears of an economic slowdown in China.
The market is likely to get a bounce from here but will not be a significant one as the negative sentiment still dominates the market. If the market breaks below the 1.27 level, then it will unwind rapidly towards its next psychologically important level, the 1.25 level.
GBPUSD edges up on sell off activity surrounding US Greenback in global market as risk appetite returns on news of Sino-US Trade related talks.
The US dollar continues to be the currency to own at the moment, as the British pound has taken it on the chin. I believe that it is only a matter time before we reach down to the next major psychological support level, and the Americans may be getting ready to push it write down to that area.
The Dollar slides early, with the Asian equity markets rebounding from heavy losses early as hopes of a U.S – China agreement on trade surface.
Investing.com - The dollar steadied against its rivals at 13-month highs Wednesday, but gains were limited by rising demand for safe-haven yen on fears turmoil in Turkey could spill over into other markets.
Investing.com - The dollar rose to 14-month highs against a currency basket on Wednesday, as fears over the impact of Turkey's currency crisis and global trade tensions bolstered safe haven demand.
Investing.com - The dollar was trading near 13-month highs against a currency basket on Wednesday amid fears over contagion effects from Turkey's financial crisis, while the Turkish lira rallied after Ankara hit the U.S. with fresh tariffs.
The British pound trying to bounce during the day on Tuesday, reaching above the 1.28 level I point as the Turkish lira got a bit of a reprieve. However, the overall trend is still to the downside, and as I sat down at my desk this morning I see that the buying pressure has been wiped out.
Inflation numbers out of the UK will need to jump to hit pause on the Pound’s demise, while U.S retail sales could influence a resurgent Dollar.
Investing.com - The dollar rose against its rivals to an 18-month high Tuesday, supported by a slump in the euro as concerns over Turkey's vulnerable economy persisted despite a rebound in the lira.
The U.S. dollar was stronger against other currencies on Tuesday, as political tensions eased and the Turkish lira recovered. The Turkish lira rallied on Tuesday, breaking a 5-day losing streak after the country's central bank pledged to provide liquidity in response to a meltdown that has unsettled global markets. Turkish Finance Minister Berat Albayrak is expected to hold a conference call with investors from the U.S., Europe and the Middle East on Thursday, his first since assuming the post almost two months ago.
The GBP/USD has formed a bullish divergence exactly near the M L5 bottom. 1.2710-40 is the zone where the correction could start. If 1.2700 holds the price might retrace to 1.2844 and 1.2900. Break above 1.2923 should target 1.3000 and 1.3052.
Pound pares gains post dovish UK data and investors focus on Brexit talks which are to resume later this week for clues of future of the pair’s momentum in long term.
The pair continued to suffer in the Monday’s session initially lower at the open but reversed some of its momenta during the American session. The Euro had lost a significant part of its value in the last two trading sessions due to fears of contagion on European Banks from the economic crisis in Turkey. The negative sentiment prevailed in the market throughout the Monday’s session as the market is very concerned about the entire Turkey situation.