Sterling Under Pressure In The U.S. Forex Session

Anna Coulling | Nov 22, 2015 01:07AM ET

By the time we came to our forex webinar for the start of the New York session, it was clear the heavily negative sentiment towards the EUR/GBP had started to wane, although it was more a question of the market targeting the British pound, particularly against the US dollar. And here too on the 5 min chart there was almost an identical technical set up to the one we had seen in the EUR/GBP earlier in the day where a failure by cable to take out the 1.5310 price point signalled the start of the waterfall.
A two bar reversal is another name for a shooting star candle, one of the most powerful technical signals, and this was evident on the 15 min chart, and indeed also followed soon after an earlier shooting star on the same chart which was the precursor to the forthcoming weakness. And with no fundamental news for the USD, it was simply a question of how low would the British pound be driven, and how high the USD would rise during the remainder of the session.

For the US dollar, the DXY USD index managed to close firmly higher, just shy of the magical 100 level, to close the week and the session at 99.65, thereby picking up the bullish moment of earlier as traders resumed heavy USD buying.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

Written By: Anna Coulling

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Show moreShow Less

Send Feedback

Privacy & Disclaimer

Follow us

© 2007-2024 Fusion Media Limited.
All Rights Reserved