GBP/USD surges to 1.3360 but then retreats
On hourly chart the British Pound is continuing to gain value against the Dollar in a two-week long ascending channel. Generally, the cable is projected to continue heading to the top in the above pattern using support continuously provided by the rising 55- and 100-hour SMAs. The ultimate goal is located near the 1.3430 level and presents location of the upper boundary of a long-term dominant descending channel. However, before that the surge of the currency rate is likely to be stopped in the 1.3370-1.3380 resistance area. In case of retreat, strengthening of the buck in unlikely to exceed the 1.3300 mark, as this support zone is backed up by the updated weekly PP and the above 100-hour SMA. Finally, the only macro release, which might cause notable volatility will the US Prelim GDP.
On hourly chart the British Pound is continuing to gain value against the Dollar in a two-week long ascending channel. Generally, the cable is projected to continue heading to the top in the above pattern using support continuously provided by the rising 55- and 100-hour SMAs. The ultimate goal is located near the 1.3430 level and presents location of the upper boundary of a long-term dominant descending channel. However, before that the surge of the currency rate is likely to be stopped in the 1.3370-1.3380 resistance area. In case of retreat, strengthening of the buck in unlikely to exceed the 1.3300 mark, as this support zone is backed up by the updated weekly PP and the above 100-hour SMA. Finally, the only macro release, which might cause notable volatility will the US Prelim GDP.
During previous trading session the cable surged to resistance zone located at 1.3370-1.3380 and then pulled back to the 1.3220. The plunge once again was stopped by a combination of the 55- and 100-hour SMAs, which are lying along the bottom boundary of an ascending channel. For now, such soars and retreats were proofed to be successful.
Today, the rate is likely to try to plummet to the weekly PP amid the Governor Powell’s testimony before Congress and Trump’s meeting with Senate Republicans about adoption of the new tax reform. However, neither of these events is expected to stop the rate in medium perspective from reaching and making a rebound from the upper boundary of a long-term dominant descending channel near 1.3400.