The sellers of the sterling were the big ‘’winners’’ since the 12th of February 2016 as they were able to force the price from 1.4566 to 1.4217.
The price has now stabilized above the 1.4304 zone which is today’s major pivot point area where both the buyers and the sellers will attempt to take the lead.
In contrast, should the sellers increase their pressures at the 1.4304 level they could force the pair even lower and thus cancelling out the high probabilities for an uptrend formation.
Probable Scenario
In the scenario where the buyers exert far greater pressures, the pair could escalate to 1.4373, Fibonacci’s 50.0%, 1.4444, Fibonacci’s 61.8%, and 1.4668, Fibonacci’s 100.0%.
Alternative Scenario
Alternatively, in the condition where the bears place greater momentum and the price decelerates below the 1.4217 level, the pair could drop to 1.4078.
Today’s Major Announcements
- The Public Sector Net Borrowing (Dec) announcement is expected to have a medium impact on the sterling
- The Consumer Price Index Ex Food & Energy (YoY) (Jan) and the Consumer Price Index (YoY) (Jan) announcements are expected to have a strong impact on the U.S. dollar
Synopsis
- Probable trend (Bullish): 1.4304
- Bullish take profit targets: 1.4373, 1.4444, 1.4668
- Stop loss target: 1.4217
- Alternative trend (Bearish): 1.4217
- Bearish take profit target: 1.4078