GBP/USD at 1.2700’s now enters the BOE preferred range from 1.2300′ to 1.2800’s and this range point failed to report in yesterday’s verbiage. At 1.2700’s wasn’t enough to move or concern interest rate traders. At 1.2300’s and 1.2400, would ve moved interest rate traders quickly.
At 1.2300’s to 1.2400’s is well well supported and its actually a dangerously and historically low price for GBP. Money market lows enter rates never seen in UK’s history dating to the 1972 free float.
For today and days ahead, 1.2743 and 1.2631 are key levels below while above range breaks are located at 1.2893 and 1.2940’s. Overall range is located from 1.2500’s and 1.2600’s to upper 1.2800’s. At dropping line 1.3200’s will see a further decline in days ahead to sustain the current ranges. Range indicators are well balanced which means GBP won’t experience anymore dramatic moves. A sharp rise above or below can’t sustain itself therefore we should see normalized trading within the new ranges.
Despite the 200 pip election fall, GBP/USD becomes highly oversold from 1.2743 and 1.2631. GBP is oversold from its driving averages 5 to 50 day.
For today, GBP is well supported at 1.2665, 1.2653 and 1.2631. Above, a break at 1.2730 and 1.2743 targets 1.2795.
EUR/US is well supported at its beak point at 1.1135. EUR/USD at 1.1147 to 1.1161 hits not only richter scale oversold for today but EUR/USD can’t hold. Above break point is located 1.1273 and for today the target comes 1.1258 upon a break at 1.1231.
A sincere thank you to Fxstreet’s respected Goncalo Moreira.