GBP/USD calm after strong volatility

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Source: Dukascopy Bank SA


Positions Today Yesterday % Change
Longs 48% 45% 6.25%
Shorts 52% 55% -5.77%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Neutral Neutral Sell
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Sell Neutral Buy
SAR (0.02; 0.2) Sell Sell Buy
Aggregate

The Sterling showed significant volatility against the US Dollar on Thursday which was seemingly caused by mounting tensions around Brexit. 

This weakened the British currency by 0.6% against its American counterpart, thus sending the pair as low as the 100-hour and 100-period (4H) SMAs near 1.3390. At the same time, the pair also reached a new two-week high of 1.3465 prior to this fall. The remainder of the day was very calm, as volatility eased due to the monthly PP and the 55-hour SMA being located nearby. 

Technical indicators flash bearish signals for this session. In case this 55-hour moving average is breached and the pair does go lower, the it faces two strong support levels at 1.3375 and 1.3340. In terms of resistance, the 200-period (4H) SMA and the 61.80% Fibo are located at 1.3550.

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