Hourly
My expectations for the pound came off in full. The GBP/USD rose to 1.5335 at the US session. From a 1.5335 maximum, the pound rebounded to 45 degrees. For us to see a continuation of this strengthening against the dollar, we need to see it rebound lower.
If we take a look at the technical picture on the daily, the closest target is 1.5390. The fundamental side is bare, so I’ve gone for a GBP/USD rise to 1.5357 on my forecast. The CIF dollar rate is down due to a closure of long positions after the FOMC minutes were published.
Daily
The GBP/USD rate has stopped by the daily LB. The day will close above 1.5255, so I’m starting to consider us seeing a strengthening of the pound to 1.5395-1.5400.
Weekly
After the FOMC minutes were published market participants decided to reduce long positions on the US dollar. A close of the weekly candle above 1.5260 will give us a false break in the trend line.
Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review
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