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Old 10-05-2018, 04:25
AndreaFM AndreaFM is offline
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Default Re: Daily Market Analysis by ForexMart

GBP/USD Technical Analysis: May 9, 2018

The British pound declined almost throughout the Tuesday session in order to test the major uptrend line once again. The 1.35 level is still significant given that it is psychologically relevant. There is also a lot of buying and selling in this area previously, which, at the same time, coincides with the major upward line. Hence, in consideration of these factors, there will be a decision soon.

The British currency dropped during the Tuesday session in reaching the uptrend line at 1.35 level. Essentially, a breakdown below could push the price further towards 1.33. Ultimately, a breakdown could loosen up sharply since the uptrend line is important. The level of 1.30 if a significant level as much as the 1.35 handle. I presume that a breakdown is logical since the U.S. dollar continues to strengthen in the summer season.

The European Central Bank has already announced that interest rates will be maintained a bit lower for a period of time that previously considered, which, in turn, added pressure on Sterling. Although this might be just for short-term and in the next few months, it is likely for buyers to return in this currency. However, the U.S. dollar will probably grow in the upcoming months which would greatly affect the currencies relative to the bond market and of course interest rate expectations. Alternately, if a breakout occurs at 1.3650 level, then there is a chance for a kick in upward momentum.
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Daily Market Analysis by ForexMart-gbpusd09.png  
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