The fall of the pound has stopped by the trend line. On Monday the pair spent the day between the U1 and D1. The pound couldn’t strengthen, just as the euro couldn’t. The day closed by passing the LB.
Yesterday the SNB made a currency intervention on the market so as to hinder the strengthening of the franc. Due to this the euro jumped from a 1.0954 minimum. Why the currency was growing in the evening, only God knows. Greece is on the edge of a default and the European officials couldn’t care less. They have readied themselves for a Grexit. I’m sticking with a side-ways movement today. Greece is still at the center of attention. On Thursday the USA is publishing its labor market report. Now to the Daily.
Yesterday I believed that the pound’s daily indicators were contradictory. They are. The pound closed with a small plus since the market opening was with a gap. The stochastic is signaling a growth of the pound.
The UK pound will remain trading above 1.57. Taking into account how the euro/dollar yesterday closed a 1.5 figure gap and managed a rebound of 300 points by the end of the day, all without fundamental reason, the risks of the pound returning to 1.5868 have increased.