GBP/USD Signals Update
No signal was given yesterday.
Today’s GBP/USD Signals
No signal is given today.
GBP/USD Analysis
I wrote yesterday that it is difficult to work with this pair after it made such huge, volatile price swings at the end of last week during the Scottish Independence Referendum. Yesterday has clarified the overall picture to some degree, showing that despite the sharp drop that occurred beginning with the release of the official voting statistics, this pair still has an overall upwards direction. The chart below shows that despite the very heavy fall of recent weeks, the price flow is upwards on daily and smaller time frames. Of course, this is in the context of a wider downwards move, so it needs to be regarded with some caution.
It looks as if we will continue to rise towards the crucial 1.6500 level where a zone of probable resistance is sitting. This is likely to be a key area for any good reversal to happen so it should be worthwhile to look for short trades here, although we are extremely unlikely to reach this price today. I cannot see any probable support areas close by before 1.6250.
It seems that the recent upwards movement will probably generally continue today, as it has some momentum and does not look likely to reverse at any nearby price levels.
There are no high-impact events scheduled today concerning either the GBP or the USD. It is likely to be a very quiet day for this pair.