Monday saw the pound/dollar drop to 1.5044. The dollar has been slowly winning back its losses across the board after the release of Friday’s NFP. The pound is being sold in many crosses (see indicator beneath price), meaning that if this kind of tendency persists, the pound could fall to112 degrees at 1.50. I reckon that we’ll see sideways movement. If the bears go hunting during the day, it could provoke a strengthening of the dollar against all currency pairs. Keep your guard up.
The GBP is still in a bear trend and trading inside the body of Thursday’s candle. There’s nothing of interest to see on the daily graph right now.
The hammer is the main signal for this week.