Cable’s established uptrend seems to have paused for now after a slight decline in British inflation and caution from the Bank of England. The BoE highlighted risks in both directions for inflation in its statement and press conference on 19 June while the Fed seemed more concerned about the possibility of rising inflation after its meeting the day before. There seems to have been some demand for the dollar as a haven in recent days as Israel’s war on Iran continues.
The intersection of $1.34 and the 50 SMA from Bands looks like an obvious static-dynamic support which might resist further testing unless there’s a significant change in narratives. The slow stochastic had been flirting with overbought at the start of the week but has now declined strongly, close to the zone of selling saturation.
Resistance is less of an obvious area. A new high seems possible in the near future but trading in the belief that the uptrend will continue seems to be risky in this situation; the risk of a false breakout looks quite high. A range might develop between approximately $1.34 and $1.363. Flash British PMIs on 23 June probably won’t have a strong impact here but a surprise from American final GDP on 26 June might bring a clearer direction.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
The intersection of $1.34 and the 50 SMA from Bands looks like an obvious static-dynamic support which might resist further testing unless there’s a significant change in narratives. The slow stochastic had been flirting with overbought at the start of the week but has now declined strongly, close to the zone of selling saturation.
Resistance is less of an obvious area. A new high seems possible in the near future but trading in the belief that the uptrend will continue seems to be risky in this situation; the risk of a false breakout looks quite high. A range might develop between approximately $1.34 and $1.363. Flash British PMIs on 23 June probably won’t have a strong impact here but a surprise from American final GDP on 26 June might bring a clearer direction.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.