After very solid moves to the upside, the pair is starting to run into resistance at the 1.32306 level on the daily chart and consolidating.
On the technical side, the pair is starting to run out of momentum and on the hourly chart it looking at levelling off 1.32188 level and with decreasing volume, a potential doji stick candle as well as the Relative Strength Index almost in the oversold territory, I am predicting a fall to the 1.29996 support level.
On the fundamental side, worsening Coronavirus cases in the UK and still damp economic data, and then more optimistic data from the US, there is very upside for the pound.
I think this is an opportunity.
On the hourly chart, I have set my stop loss at the closest resistance level of the 1.32582 range and my profit taking at the 1.29996 level, my risk reward ratio is 5.39 which is a tremendous payoff.
I have my eyes on the hourly, however, I am very confident to hold this trade over the next couple of days.
On the technical side, the pair is starting to run out of momentum and on the hourly chart it looking at levelling off 1.32188 level and with decreasing volume, a potential doji stick candle as well as the Relative Strength Index almost in the oversold territory, I am predicting a fall to the 1.29996 support level.
On the fundamental side, worsening Coronavirus cases in the UK and still damp economic data, and then more optimistic data from the US, there is very upside for the pound.
I think this is an opportunity.
On the hourly chart, I have set my stop loss at the closest resistance level of the 1.32582 range and my profit taking at the 1.29996 level, my risk reward ratio is 5.39 which is a tremendous payoff.
I have my eyes on the hourly, however, I am very confident to hold this trade over the next couple of days.