Sterling Weakness
The Sterling Dollar as we all know has been falling recently but have we found a support now?
On analyzing this pair we have a clear downtrend in progress. We have had a support and small reversal as a result of the fib reversal and are now doing what looks like a bearish flag. The flag is not complete so we can't be certain this is the pattern but other than 1.95 support that we mentioned we would get to if we continued our downtrend back in the beginning of January (click here to view post) we dont have much else.
So is the GBPUSD going to continue it's free fall.
Now it is going to be dependent on fundamentals and technicals. The technicals are saying yes if we break the support level but the key will be the fundamentals. Watch out for BoE Inflation Report tomorrow, we might just see this pair make a move after it's range of the last few days.
Chart courtesy of Advanced Get. Data provided by eSignal.
On analyzing this pair we have a clear downtrend in progress. We have had a support and small reversal as a result of the fib reversal and are now doing what looks like a bearish flag. The flag is not complete so we can't be certain this is the pattern but other than 1.95 support that we mentioned we would get to if we continued our downtrend back in the beginning of January (click here to view post) we dont have much else.
So is the GBPUSD going to continue it's free fall.
Now it is going to be dependent on fundamentals and technicals. The technicals are saying yes if we break the support level but the key will be the fundamentals. Watch out for BoE Inflation Report tomorrow, we might just see this pair make a move after it's range of the last few days.
Chart courtesy of Advanced Get. Data provided by eSignal.
Forex Analysts
Javid Shaik & Anne Chapman
posted by Javid Shaik @ 11:24 AM
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