Earlier this month the pound sterling hit a minimum at 1.4830. This pair has recovered positions for more than 400 pips, which now trades at 1.52 level, from a daily perspective this pair now trades below the long-term bearish channel (red), and over the short-term bullish channel (green). We must be attentive to these levels, since the breakdown of the short-term bullish channel could push down the pair to the 1.4930 level, strong support on the weekly charts. We believe the pair should have a more prolonged decline because the momentum indicator is in overbought area getting ready for a bearish signal in the coming days. Therefore we recommend selling below the uptrend line with objectives to 1.4930.
If you need personal consultation, contact me via e-mail: gerardo.porras@analytics.instaforex.com
