Fundamental:- The GBP has really struggled over the past month even after all the MPC members voted to raise interest rates. Mark Carney gave a rather dovish speech following the interest rate decision weakening the GBP further. Next week we have the average hourly earnings which is not expected to rise however if it does then it should increase the GBP strength significantly. CPI y/y is also expected to rise which will help the GBP if it beats expectations. On the USD side there are more longs on the USD at the moment than since January according to the CFTC which normally means a turn around could be imminent as we run out of sellers for the buyers to take trades.
Technicals:- As you can see from the chart the recent downside has now come into some support which is cycled as previous support and resistance. The price has dropped through the 68% fib retracement which is why I am going to wait for it to break back above the 12800 support level before I enter
Technicals:- As you can see from the chart the recent downside has now come into some support which is cycled as previous support and resistance. The price has dropped through the 68% fib retracement which is why I am going to wait for it to break back above the 12800 support level before I enter