After the decision from the Bank of England that came out yesterday, the pound didn’t quite hit the forecasted maximum that was expected of it. However, fluctuations did take place as expected. There’s not much news out today. Friday is the day. Some will decide to close their positions before Sunday’s EU summit. Two Monday’s in a row the market has opened with an upward dollar gap.
So what can we expect from the pound today? I first of all wanted draw your attention to the W shaped pattern with a 1.5488/1.50 target. Then I thought about what could happen if there’s no positive outcome from the Greek summit on Sunday. As a result of all this, on Monday we’ll see another downward facing gap.
Due to this I’m considering a GBPUSD growth to 1.5430 (forming a troika from 1.5329) and then with a drop in the rate to 1.5357. For me, this is ideal. The pound has been trading by the support line on the daily.
The pound is attempting to break from the support, but it hasn’t managed it yet. The buyers are afraid of buying pound against the weekly indicators in expectation of the upcoming EU summit. For the moment, I’m sticking with a target at 1.5169.
The weekly candle is closing down at the moment. If it closes down, next week I’ll be considering a fall for the pound to 1.5169.