Forex News: The market was closed Friday due to Christmas Day so today we will pick off from Thursday’s closing price.
Price action will be slow today and direction hard to anticipate. The first barrier to the upside is located at 1.0980, followed by 1.1010 and first support is located at 1.0870 but we don’t anticipate a break of either of these levels. If price does move past one of them, we expect it to return inside the range. The 50 period Exponential Moving Average will also act as support as long as price stays above it.
The economic calendar doesn’t offer any type of economic releases today so price action will be entirely ruled by the technical aspect but more so by the low liquidity characteristic for this period.
Thursday the pair climbed and touched the 50 period Exponential Moving Average so there was some Pound strength but to a limited extent.
The fact that we saw Pound strength Thursday doesn’t mean that today the impulse will continue and instead it’s very possible to see a move lower after a bounce at the 50 period Exponential Moving Average. The Stochastic has reached its 80 level on a four hour chart and this suggests that we might see a move lower which will probably touch 1.4895.
British banks are closed today, celebrating Boxing Day and no economic indicators are scheduled for release, thus we anticipate irregular price movement.
Written by: Bogdan Giulvezan