GBP / USD
The cable is at the forefront of European trade Friday after the end of Thursday’s action in the Doji candle and signaling that the fall of four days could run out of steam. The Bollinger band below 20 days contained a fall and further attempts to raise the pivoting barriers to 1.2414 (30DMA) and 1.2436 (converged 10/20 / 55DMA). A firm break is needed here to keep the bears away and allow further recovery. The momentum on the daily chart is increasing towards the median axes and the stochastic has emerged from the oversold territory, supporting the notion, while the daily cloud continues to support. The pair is in a wider range, defined by 1.2174 (low range / Fibo 38.2% of 1.1409 / 1.2647) and 1.2647 (200DMA / high of 14 and 30Apr) and a cut of each side is necessary to generate a new direction signal.
Res: 1.2414; 1.2434; 1.2484; 1.2500
Supper: 1.2352; 1.2335; 1.2309; 1.2265