GBPUSD Analysis: Plunges To Trend-Line

GBPUSD Analysis: Plunges To Trend-Line

Following a 121-pip fall mid-Thursday, the Sterling entered a minor period of consolidation slightly below the 200-hour SMA. Any attempts to breach this moving average was disrupted by a massive hourly plunge which pushed the rate 0.76% or 107 pips lower down to a two-month trend-line.

By Friday morning, the pair had not still recovered from this fall, and it was trading in a narrow range near the 1.4080 mark.

It is more likely that this session marks a bullish reversal, as the market sentiment is expected to turn bullish after this two-day decline. The upside target should be the combined resistance of the 55– and 200-hour SMAs and the weekly PP at 1.42.

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In case bulls fail to accelerate, the Pound might still edge slightly lower down to the senior channel, the monthly PP and the weekly S1 at 1.40.



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