Three trading days has shown the pound's weakness, the current levels look attractive for the medium-term investors who are counting on the upward trend continuation. However, the debt market dynamics shows a mixed background - the British 10-year Treasury bonds profitability has been lowering against the US Treasuries and is growing to German bonds.
The Pound continued its downward correction relative to the US dollar. After three days of a corrective decline the pair broke the strong support level of 1.5775 and tested the level of 1.5670. Then the pair slightly corrected upwards.
The price is finding the first support at 1.5670, the next one is 1.5550. The price is finding the first resistance at 1.5775, the next one is 1.5950.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”.
The MACD histogram is in a neutral territory. The price is correcting.
The potential decrease targets are two levels of support: 1.5670, 1.5550.Publication source