GBP/USD meets 100-hour SMA
GBP/USD meets 100-hour SMA
Previous trading session the Pound ended with a 104-pip fall against the Dollar. The support was provided by the 100-hour SMA. Most probably this indicator will continue to drive the cable up to the 55-hour SMA located at 1.3553. Even in case of release of disappointing British Services PMI data the pair is not expected to fall below the 1.3500-1.3580 marks as this support area is additionally secured by the 50% Fibonacci retracement level and the weekly PP. However, in larger perspective the buck is expected to take the lead once again. This assumption is supported by traders’ sentiment, which is predominantly bearish as well as allocation of pending orders which are mostly set to sell.
Previous trading session the Pound ended with a 104-pip fall against the Dollar. The support was provided by the 100-hour SMA. Most probably this indicator will continue to drive the cable up to the 55-hour SMA located at 1.3553. Even in case of release of disappointing British Services PMI data the pair is not expected to fall below the 1.3500-1.3580 marks as this support area is additionally secured by the 50% Fibonacci retracement level and the weekly PP. However, in larger perspective the buck is expected to take the lead once again. This assumption is supported by traders’ sentiment, which is predominantly bearish as well as allocation of pending orders which are mostly set to sell.
Although the ADP released some positive information on employment change yesterday, the Dollar continued to lose value against the Sterling. The surge was mainly driven by the 100-hour SMA, which together with the 55-hour SMA is expected to continue providing support for the pair. As norther side is barrier-free, the cable is expected to spend first half of this trading session tending to reach the weekly R1 at 1.3596. An existence of one junior and one medium scale ascending channels supports the further advance of the Pound.
However, whether the pair will manage to bypass the monthly R1 at 1.3615 or not will greatly depend on today’s release of the American labour market data. In the meantime, there is a need to take into account that majority of pending orders both in 50- and 100-pip range are set to sell.