Wednesday, March 22, 2023

British Pound Remains Cheerful |


On the final Monday of November, the in pair with the American dollar is growing, generally trading at 1.3338.

Such optimism of the pound is outstanding: the talks with the EU on the future trade agreement are still on, though there is practically no time for the ratification of any agreements. The most urgent issue is fishing—the parties have no common views here at all. The perspectives of solving arguments in the future remain vague, and so do the details of governmental help at all levels.

All that Britain is doing is a sort of a protest against selling its sovereignty. Neither party is ready for a compromise. The agreement might be saved by a talk between the British prime minister and the President of the European Commission, but the chances are scarce.

On H4, GBP/USD reached the local goal of the wave of growth to 1.3382. At the moment, the market is trading in a consolidation range at the high of the wave. We expect the price to escape the range downwards, correcting to 1.3220. The goal is first. Upon reaching it, the pair might grow to 1.3344, then, fall to 1.3111. Technically, this scenario is confirmed by the MACD oscillator: its signal line has left the histogram, and is heading for zero decisively. After this level is broken away, the price chart will join in.


On H1, the currency pair completed a declining impulse to 1.3260 and a link of correction to 1.3340. At the moment, a consolidation range formed around this level. Escaping it upwards, the market extended the range to 1.3395, practically forming a Double Top. Breaking 1.3340 downwards, the market extended the range to 1.3285. Today, the price is testing 1.3340 from below—we expect it to bounce off this level and go down to 1.3260. If it is broken away, the price might fall deeper down to 1.3220. Technically, the scenario is confirmed by the Stochastic oscillator. Its signal line is trading under 80, warning that the market is overbought, and a correction might soon follow on the price chart.


Disclaimer: Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

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