GBP/USD filling the gap - bullish near term, bearish

GBP/USD filling the gap – bullish near term, bearish

A daily candlestick chart of the GBP/USD currency pair appears above showing the rate filling its downside gap made last weekend. The rate is now retesting its broken declining channel bottom, but it remains below its falling 200 day Moving Average shown in green. Its 14 day RSI appears in blue in the indicator box and has returned to lower neutral territory after having been oversold.

Cable bounced back from its 1.6058 recent low to fill last weekend’s gap, rising to 1.6276 yesterday before meeting selling pressure just ahead of its broken down channel’s bottom line now drawn at 1.6301. The rate’s 200 day MA lies at 1.6745 with an increasingly negative slope. Its 14 day RSI has recovered to lower neutral territory from considerably oversold levels and now reads at the 32.59 level. Resistance shows at 1.6276/80, with support seen at 1.6232 and 1.6156. Its outlook is bullish near term but bearish medium term.

More: This week in the markets: Pound fluctuates over uncertainty in Scotland

Jay Hawk

Jay Hawk of Orbex enjoyed a twelve year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Jay Hawk personally leased seats and traded as a specialist market-maker with a broker/dealer license on major U.S. trading floors. He also ran stock and options broking desks with hundreds of retail and professional accounts, and I actively managed trading portfolios for private clients as large as $30 million both on and off the trading floors. In addition, Jay started a professional options stock exchange brokerage to provide brokerage services on to floor market-makers and upstairs traders located in New York and Chicago. Jay also gave option seminars as both a consultant and educator and helped start the exchange traded currency options market.

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