Richard Perry
Independent Analyst
GBP/USD
Has the selling pressure begun to subside? Last Friday’s low at $1.1405 has remained intact (a multi-decade low) during yesterday’s session and with Cable over +100 pips higher today, there are tentative signs of support. RSI is picking up (from 17 which was also the low of October 2016) whilst Stochastics are steadying too. There is more evidence of hope on the hourly chart, where the 7 day downtrend has been broken (and is now becoming a basis of resistance). Also the hourly RSI is now beginning to consistently hold on to 40, which suggests at least consolidation, for now. Initial resistance for today is $1.1700/$1.1740 but the main level to watch is $1.1930 as a break above here would be formation of a near term base pattern. The Average True Range remains wild at 289 pips (once more even yesterday’s more relatively settled session beat that) so given that today’s range is “just” c. 190 pips, we can expect more volatility as the session goes on. Support at today’s low of $1.1445.
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