Technical analysis of currencies and a look at the trading of the pound sterling against the US dollar

technical analysis of currencies; The pound sterling witnessed yesterday's trading, an increase of 0.3% against the US dollar, due to corrections and profit taking

On Tuesday, the British pound hit a six-month high at $1.2905

The pound rose by 2.2% against the US dollar during the week's trading, heading to record the second weekly gain in a row, after British Prime Minister Theresa May called for early parliamentary elections on June 8, after the majority of Parliament approved the elections.

At 07:45 GMT, the pound sterling against the US dollar traded at the level of 1.2815, and today's session opened at the level of 1.2812, to record the highest level at 1.2822 and the lowest level at 1.2793.

During trading today, Friday, the British pound stabilized against the US dollar in the European market, after the release of data on monthly retail sales. The actual reading came in at a low value of 1.9% for the month of March, while expectations indicated a value of 0.3%, and the previous reading had recorded a value of 1.4%.

Limited decline in the US dollar index

The US dollar index fell in a limited range during trading today, Friday, and the US economy is awaiting today a set of data on the manufacturing, services and housing sectors.

Today, the preliminary reading of the purchasing managers' index for the manufacturing sector was issued, and expectations had indicated 53.9 points for the month of April, while the previous reading recorded 53.3 points.

As for the non-manufacturing PMI, expectations indicated 53.7 points for the month of April, while the previous reading recorded 53.8 points.

Also, expectations for existing home sales indicated 5.61 million homes for the month of March, while the previous reading recorded 5.48 million homes in February.

pair technical analysis  GBPUSD

The British pound against the US dollar is trading at the level of 1.2790, where the price rebounded towards the downside after it failed to breach the resistance level as shown in the chart.

The pair is trading below the level of the average moving indicator line, and both Stochastic and MACD are showing a negative crossover towards the bearish trend on the four-hour time frame.

Therefore, the price is expected to continue the bearish trend to target 1.2715 in the near term

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Mohamed Abdel Khaleq

A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.

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