GBP1 D1 chart | Our expectations:
Following the serious instability in the pounds in March, the market seems to be in “wait and see” mode, with speculation and news missing out on Brexit’s latest development in the last week. Investors seem to be losing sight of sterling purchases, lacking the fundamentals to send the pound to new positive territory. However, looking at the technical analysis, expectations are for a more likely increase in price.
Price adjustment to 38.2 Fibo. The psychological level of 2,2592 remained valid, where we see an reversed hammer and 9th from DeM Sequential signaled the probability of a new upward impulse. The SMA50 retains its role of resistance for the moment, which can lead to a slight adjustment that will enable us to make more profitable purchases of pounds. The zone between current levels and 2.2590 seems quite potential for purchases.
Alternatively, if the price holds with a closed bar below 2.2592, this can lead to a deeper adjustment of the last upward movement.