After the rise of last week GBP against the dollar declines at the beginning of this week- analysis 07-11-2016

After boarding witnessed by the pair of sterling against the US dollar over the past week; the pair saw a decline at the start of trading this week, trading around 1.2410 price level, represented in 23.6% correction level for the decline from 1.3445 to 1.2088.

 

The pair had responded to some positive signs during the previous week rebounding from the support level of 1.2088 surpassing the negative pressure for the _ SMAs 50 and 100, which pushed the price to rise approaching the resistance level of 1.2605, represented by the correctional level of 38.2% for the same decline, in addition to the appearance of an oversold sign on the stochastic indicator, which supports the positive moves on the price during the current trading.

 

Generally; now the pair is trading around 1.2410 resistance, as the stability above this resistance will push it to try to skip to the next resistance 1.2605, but holding below 1.2410 will push the price ahead the supports 1.2260 then 1.2088.