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Pound remains under pressure versus the Dollar

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The GBPUSD remains stuck in a range the last couple of weeks, between the strong resistance zone of 1.6180 – 1.6225 and the 1.5950 barrier. Despite numerous attempts over the last weeks, the pair has failed to break above the 1.6225 level or below the key support of 1.5875, highlighting the fact that the markets are lacking direction over the last month. This comes also with the break of the descending trend line that carried the GBPUSD pair above the psychological level of 1.6100. Around that area, the 50-period SMA as well as the 200-period SMA are ready to provide a significant resistance for the pair, while the MACD crossed below the zero line, both which are also bearish.

With the above in mind, if yesterday’s selling pressure continues, I would expect the price to challenge the 1.5875, a strong technical level over the short and the medium term. Around that area, I would expect a battle to take place between both market forces, as I consider this area a turning point for the pair, which could turn to the upside for more serious correction towards the 1.6200, or to the downside for a continuation of the downtrend.

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