Skip to main content

GBP/USD forms double bottom on daily charts but will it hold?

On November 30 the GBP/USD fell to 1.2604 and then rebounded into the weekend, rising above 1.27 once more. However, the pound fell back once more yesterday, as it came under pressure from a resurgent US dollar. That saw the GBP/USD drop back from a high at 1.2725 very late on Sunday evening. The low seen right on the 4pm London Fix yesterday was set once more at 1.2604. It subsequently posted a US close last night at 1.2633. It has not strayed too far from that close so far today. So, in essence we have a clearly defined double bottom in place on the daily charts now at 1.2604 and it remains for me to add the usual caveat- will that become a target to aim at, or will it define a base from which further upside can be seen? There is no view on that here right now, but clearly the dollar is still the currency in the driving seat, in the absence of any fresh dynamic downside in the EUR/GBP. The high seen earlier today was set at 1.2645. The pound has just now set a session low at 1.2625
 

Ready to Get Started?

Start here. Join 2.9M Libertex users around the world!