The UK pound hit the jackpot yesterday. During the day it strengthened on UK inflation data and in the evening it strengthened on weak US statistics. In the end it was up against the dollar by 2 figures. Since the pound/dollar reached the U3, I think we’ll see a correction after a renewal of the maximum, Furthermore, the pair has reached the trend line on the daily (see daily graph). If it doesn’t fall, it’s likely we’ll see the forming of a saw along the U3 (still two peaks). According to the price pattern on the daily, the pound could reach 1.56 against the dollar.
The news changed the direction of the indicators. It’s normal since the fundamental news is more important than the technical signals. The interim resistance level was reached. The key trend line goes through 1.5630. With such a candle, we can consider a strengthening of the pound.
After yesterday’s UK and US data, the bulls have taken the rate to the trend line at 1.5630.