I don't see a reason for a bullish play on sterling. Economic data doesn't indicate on any strong underlying momentum in the economy, EU deal on Brexit is likely to stir dissent from UK government, scotland referendum risks are also hard to underestimate. My medium-term target is 1.2260, just wait for the right trigger.
The British pound recorded a decline against the US dollar on Tuesday. The pair lost 38 pips at a closing price of 1.2197. Daily extreme values were reached respectively at 1.2251 and 1.2168. Bearish sentiment retain its dominance at present, as confirmed break of 1.2150 will enable the continuing decline.
The British pound was up against the US dollar on Friday. By the close of US trading, GBP/USD was trading at 1.2170, gaining 0.04%. I believe that support is now at 1.2134, Thursday's low, and resistance is likely at 1.2302, Monday's high.
The pound gained ground against the dollar on Wednesday. So the British currency fully recovered losses from the previous session and walked out of the narrow range in which was trading lately. Meanwhile, resistance at 1.2303 was breached and if the positive sentiment continued level at 1.2360 is also threatened. Trade was opened at a price of 1.2154 and closing rate was 1.2288. The trend was bullish of all time, peak was reached at 1.2308.
The British pound was up against the US dollar on Friday. By the close of US trading, GBP / USD is trading at 1.2396, gaining 0.31%. I believe that support is now at around 1,2106, Tuesday's low, and resistance is likely at 1.2405, the high of Friday's trading.
Last week's strengthening of the pound led the GBP / USD to 1.2400, which is just slightly below the simple moving averages for 50 and 100 days. The gain may slow next week, but if GBP / USD breaks above 1.2400 on Monday, it may reach 1.25.
Yesterday the dollar lost 114 pips against the British pound. Opening rate of the day was 1.2358, and the day began with a slight preponderance of bulls before the bears to take the bottom level of 1.2340. This forced bull market players and in the next hour first resistance level of 1.2420 was breached. High of the day was recorded at exchange rate 1.2494. At the end of session one British pound was traded for 1.2472 dollars.
Pound/dollar had a bullish momentum yesterday, formed a peak of 1.2493. Commercial bias remains bullish for now to test 1.2570 as part of the bullish scenario after the rebound of a triple bottom near 1.2135/08. Intraday support at 1.2440 is seen. A clear break below that could bring price to neutral zone for testing 1.2390. The longer, however, the price holds above 1.2300, I prefer bullish scenario at this stage, and any downside pullback should be seen as a good opportunity to buy.
GBP/USD registered a volatile session on Wednesday. The pound has won 6 pips to an asset. The opening rate was 1.2473 and during the day there were numerous fluctuations in the currency pair. In the first hours of the new day, there was a slight majority of the bulls and they successfully took a peak at a level of 1.2505. There was awakening in bearish players and consequently the course reached the bottom at a rate of 1.2423 or just 3 pips from the first support. Eventually a British pound was worth 1.2479 against the US dollar.
The British pound registered a volatile session against the dollar on Wednesday. The pair opened at 1.2448 and ended at 1.2432. The graphics continue to develop between moving average, while the index of relative strength remained on neutral territory. In the short term outlook remains neutral as overcoming the levels at 1.2516 or 1.2360 will determine prevailing attitudes.