NEW YORK (Forex News Now) – As of around 6:10 P.M. GMT on Wednesday, sterling was struggling to hold on to gains versus the dollar, after retreating from a fresh 2-month high in European currency market trading.
This is what the analysts say about the heavily traded currency pair in the near-term:
FXstreet points out that the hourly chart shows a “bearish momentum,” while cable’s FX rate is limited on the upside by the 20 SMA, which is now acting as dynamic resistance around 1.589.
In the site’s GBP USD analysis, the “pair needs to confirm the break of 1.5840 support zone to extend the fall towards 1.5770 price zone.”
Forexcycle, meanwhile, takes a more bullish view of cable’s outlook. The realtime forex news site notes that another rise towards 1.5997 (Aug. 6 high) is to be expected in the coming days.
The site adds that, “Support is at the lower border of the rising price channel, now at 1.5750, as long as the channel support holds, uptrend could be expected continue.”
In a report aimed at technical analysis trading, Actionforex points says that while upside momentum “remains unconvincing,” a further rise is still likely since support at 1.5668 remains intact.
“On the downside,” the site adds, “break of 1.5668 support will in turn indicate that rise from 1.5296 is finished and turn focus back to this support instead.”