GBP/USD stays in senior channel

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 60% 53% 11.67%
Shorts 40% 47% -17.50%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Sell Buy Buy
SAR (0.02; 0.2) Sell Sell Buy
Aggregate

In line with expectations, the currency exchange rate failed to break from the one-month-long descending channel yesterday.  

Accordingly, it formed a third reaction low and continued to move in the opposite direction. However, it seems that the 55-hour SMA is not going to allow the Pound to gain more value against the Dollar, as it did many other times in the past. 

On the other hand, if a released data on the UK Services PMI will appear to be better than expected, this barrier is unlikely to withhold pressure from bulls. 

An additional impulse for surge or, in contrast, for downfall is also expected to be provided by an update on the US employment as well as the Fed Chair Yellen speech.

Regardless of outcome, there is a good chance that the pair will manage to stay within the pattern.

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