Above is the daily chart of GBP/USD. After BOE announced that it would keep its interest rate low, sterling slumped hardly and reached 1.60.
The red line is the long-term up-trend line, which was a support to the pound until five days ago. And now we could confirm its breakdown. GBP has turned into a bearish trend.
Trying to find its support, I applied two tools on the chart. First one was the fibonacci projection, using the high in April and level when pound broke down. It seems like 1.56 is its ground, but 1.59 would definitely have strong support too.
Another tool was the Andrew's Pitchfork. It suggests a much lower support than fibonacci, and its slope is quite steep, telling us that the pound would plunge in a sudden.
No comments:
Post a Comment