The Pound Continues To Dominate Trading

• 15 Sep 2017

EUR/GBP

The EUR/GBP daily chart shows the pair breaking a previous resistance line at the 0.892 price level. A break of the zero line on MACD indicates that momentum is bearish, however, there are signs that the pair is oversold. RSI has hit the 30 support level and there have been several breaks of lower Bollinger band. RSI will be required to bounce back from the 30 support level to indicate a bullish reversal.

Impact event: The Bank of England Quarterly bulletin will be released at 14:00 GMT+3.

GBP/JPY

The theme of Pound dominance continues with the GBP/JPY pair. The daily chart shows the pair breaking a market top at the 147.51 price level, to the upside. Strong buying pressure is denoted by the long lower shadow in the current trading session. MACD has broken the zero line to the upside, indicating that sentiment is positive. However, the pair is entering into overbought territory, with 5 consecutive breaks of upper Bollinger band. RSI has also hit the 70 overbought area which could indicate that the bullish momentum will not last.

GBP/AUD

Another currency suffering against the Pound is the Australian dollar. MACD has broken the zero line to the upside, with moving averages having an upward trajectory. Again, the question remains: is the asset oversold? RSI has broken above the 70 line and there have been consecutive breaks of the upper Bollinger band. Volume has been rising into the move, however, indicating strong conviction from Pound buyers.

GBP/CAD

The GBP/CAD pair has broken the 20-period EMA to the upside and hit the upper Bollinger band. Volume has been climbing into the move and there appears to be further upside potential on RSI. For the bullish trend to be confirmed, however, a break of the zero line on MACD is required.