The GBP/USD continued to mount a comeback on Wednesday, March 2, as technically oversold conditions encouraged speculative buying, short-covering and profit-taking.
The GBP/USD continued to mount a comeback on Wednesday, March 2, as technically oversold conditions encouraged speculative buying, short-covering and profit-taking.
The rally began two days ago with the formation of a potentially bullish closing price reversal bottom at 1.3835. Earlier the Sterling finished at 1.4022, up 0.0073 or +0.53%, FX Empire reports.
As analyst James Hyerczyk says with the referendum on whether to leave or remain a member of the European Union rapidly approaching, a current survey suggests that 60% of U.K. citizens favored continuing EU membership, compared with 30% who favored withdrawal.
According to analysts at AFEX, the international payment providers, have said that it would not be a surprise to them to see, “at least a temporary cessation in (pound) selling pressure during the next few weeks, given how far and fast values have already eroded in 2016.”
Forex Forecast GBP/USD for March 3 says that currency pair GBP/USD continues to be traded of Forex in the limits of formation of inverted head and shoulders pattern: «There is a high potential for movement in the region at the level of 1.4230 due to a broken trend line on the relative strength indicator, which indicates on test of a similar line on the chart of the pound-dollar pair. However, we are waiting for an attempt to model the formation of the head and shoulders with a field test of the 1.3840 level, for attempts to buy the pound with a close stop. Cancellation option will break through the level 1.4030, which will indicate just the continuation of the upward movement».
