Apr. 30, 2021
The GBP/USD crashed after losing 125 pips, breaking down to 1.3818.
Meanwhile, United Kingdom CFTC GBP speculative net positions were released today at 7:30 PM with a figure of 29,200, This is better than the previous number of 25,200. Data for United Kingdom Nationwide HPI (MoM) (Apr) released today at 6:00 AM came out at 2.1, beating projections of 0.5 and showing improvement over the preceding figure of -0.3. The United Kingdom Nationwide HPI (YoY) (Apr) came out at 7.1, above the estimate of five. This is also a step forward from the previous data of 5.7.
As the day reaches an end, a chart visual study suggests the pound/dollar might start to recover soon because it is getting close and is now only 128 pips from the support line at 1.3689, Obviously, dipping below it could be an indication that further losses are ahead. Asset volatility analysis shows that a slight indication of recovery comes from looking at the Bollinger bands: the lower band is at 1.3705 – a low enough level to usually suggest the Pound/Dollar is trading below its value. In contrast, at 1.3837, the British Pound made an initial breakout below the 50 day Simple Moving Average, an indication of a negative trend.
Overall, looking at the technical analysis landscape – although indicators are mixed and some are pointing in different directions, it seems the British Pound might reverse course and start pointing upward in the short term.
However, positive performance can be seen looking at other symbols, as for the first time in 4 months, GBP/CAD fell below the 1.71 level.
At the same time, USD/HKD trades around 7.7674, with no major change.