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Pound Slows Around 1.5550


On Wednesday the pound received support from the crosses until the end of the European trading session. A correctional phase started from a maximum of 1.5552. The pound returned to the road from the hard shoulder (above the U3 line) and corrected at 45 degrees.

The stochastic returned to the buying zone. The AO indicator doesn’t have enough bear divergence. You could say that the bulls are trying to chase up the rate to 1.5573 (67° from 1.5480) after a growth above 1.5440 (4th June maximum).

Today I’ve not bothered to do a forecast of different scenarios since the picture across all pairs is contradictory. The AUD/USD has grown on the back of strong Australian labor market data. The rate of the NZD/USD has crashed by 2 figures after the RBNZ dropped its base rate by 0.25% to 3.25%. The euro is ready for a fall, whereas the pound is expected to jump up. Let’s have a look at the Daily tab.


GBP/USD Hourly Graph


After a break in the trend line, the pound/dollar rate stood at a distance from 1.5189 until the trend line. On the graph I showed this with triangles. As we see, the pound/dollar reached an interim resistance, but not a definitive target. There’s a contradictory picture across all pairs on the market at the moment. It’s unclear who’s following what. There’s one thing that can be said about the pound: if the rate falls below 1.5440, then the double bottom will finish off at 1.5552. Now to the Weekly tab.


GBP/USD Daily Graph


The crosses are helping the buyers. Precisely because of the crosses the bulls have managed to keep up the tempo against the US dollar. The day closed above 1.5440, meaning the road is open to 1.5792. All that’s left is to wait for the closing of the candle.


GBP/USD Weekly Graph

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