Technical Analysis

GBP.USD D1

The market is flat. Resistance is at MM3 and just below MR 1. Support is at MM1. Stochastic indicates an oversold market. Bulls are expected to enter the market and most probably take profit at the MR 1 resistance.

GBP.USD H4

According to H4 the bulls have entered the market at WS1 and will keep on buying to take profit at WR2. The pound is expected to weaken against the dollar due to political uncertainty and an undervalued pound. The stochastic graph indicates that the pair has been over bought. I will place a pending order to sell at WR2 with a stop loss just above WR2 and a take profit at WS1. I will keep on trading the range, buy at support and sell at resistance until a trend develops.

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