UnknownUnicorn890690

GBP/USD reaches monthly R1 at 1.3208

FX:GBPUSD   Brittiska pund/Amerikanska dollar
Morning outlook - GBP/USD reaches monthly R1 at 1.3208

  • Due to positive numbers that were revealed during a release on the UK Manufacturing Production, the Pound caught an upside momentum that helped it to reach the monthly R1 at 1.1320.
  • However, this barrier appeared to be strong enough to prevent the further surge.

  • Given that the southern direction is secured by the 55-hour SMA and the updated weekly PP at 1.3110 as well as the approaching 100- and 200-hour SMAs, an extensive drop is not expected to follow.
  • In contrast, these indicators will motivate the pair to try break to the top. Except for the above monthly R1 the next closest resistance barrier is located only at 1.3310.
  • In addition, there is a need to take into account an existence of a larger ascending channel (tendency of the pair to surge to its upper boundary).
  • Yet, these projections can be altered, as the Sterling is expected to be quite heavily affected by a number of data releases this week.
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