Range Markets

In first half of Friday’s trading session the Pound was actively appreciating against the Dollar being fuelled by reports about progress made on Brexit divorce bill.

However, once this anxiety ran out and the US posted another set of positive employment data the pair returned back to the monthly PP located at the 1.3372 mark.

At the moment, the cable is testing combined resistance level set up by the 55-, 100- and 200-hour SMAs as well as the weekly PP at 1.3415.

Unless the rate receives a proper impulse from some news, a rebound is expected to happen. Such scenario also looks more plausible from fundamental perspective due to expectations of the upcoming interest rate hike and adoption of tax bill.

However, today a deep plunge is unlikely to happen, as the above monthly PP still represents strong support barrier.

Leave a Reply

Your email address will not be published. Required fields are marked *