Pound/Dollar: Moving to Trend Line
On Thursday following the FOMC meeting, the pound/dollar rose to 1.5627. The Fed left the base rates unchanged. Janet Yellen’s speech was reserved. The GBPUSD growth slowed just above the U3 line.
A 45 degree rebound from the 1.5627 maximum took place. What are we waiting for? A growth to 1.5627 and then back to 1.5525/30. The U3 line will hold the buyers back. In addition, there’s divergence on the AO indicator. The best purchase would be one made from the LB.
The FOMC convened and as a result the pound/dollar reached an important resistance level. If the pressure on the USD increases next week, the pound will reach the upper limit of the channel (green line) at 1.5765. What the pound is doing on the daily leaves me clueless.
The pound/dollar is moving towards the trend line.