Against the US dollar, sterling ended another week on the ropes, down -0.7% and on track to touch gloves with weekly support at $1.2331 this week. The longer-term trend based on the weekly timeframe shows current action is establishing a correction in a market trending higher since the currency pair touched a record low of $1.1156 in September 2022.
With room for sellers to remain in control for the time being on the weekly timeframe (at least until support at $1.2331), price action on the daily timeframe, as you can see, manoeuvred beneath the 200-day simple moving average at $1.2431 on Thursday and retested the lower side of the dynamic value on Friday as resistance. Having seen the daily timeframe’s trend exhibiting a downward bias (series of lower lows and lower highs), the next support calling for attention on the daily scale is $1.2272, located a touch south of the weekly support highlighted above at 1.2331.
Analysis of the H1 timeframe reveals buyers and sellers ended the week rejecting the underside of the $1.24 psychological level. This followed an earlier rejection of resistance at $1.2438 during the early hours of London on Friday. Given that the weekly and daily timeframes demonstrate that the bears will likely remain in the driving seat for now, downside risks remain for the currency pair this week, targeting the weekly support at $1.2331, closely shadowed by H1 support at $1.2325.
With room for sellers to remain in control for the time being on the weekly timeframe (at least until support at $1.2331), price action on the daily timeframe, as you can see, manoeuvred beneath the 200-day simple moving average at $1.2431 on Thursday and retested the lower side of the dynamic value on Friday as resistance. Having seen the daily timeframe’s trend exhibiting a downward bias (series of lower lows and lower highs), the next support calling for attention on the daily scale is $1.2272, located a touch south of the weekly support highlighted above at 1.2331.
Analysis of the H1 timeframe reveals buyers and sellers ended the week rejecting the underside of the $1.24 psychological level. This followed an earlier rejection of resistance at $1.2438 during the early hours of London on Friday. Given that the weekly and daily timeframes demonstrate that the bears will likely remain in the driving seat for now, downside risks remain for the currency pair this week, targeting the weekly support at $1.2331, closely shadowed by H1 support at $1.2325.