Sterling rose to a 26-year high versus the dollar above $2.06 while Speculators continue to bet on the possibility of another rate hike from the BoE to 6% as early as August this year. The raising volatility in the currency and stock market was followed by a negative trend in European stocks and the rate hike in china fueled some slips in the Asian ones. The Carry trad starts to diminish and fueled some buying on the yen.

The selling point is at 248.90 triggered by a failure to break the 249.00 resistance.

Take profit is positioned at the 248.50 daily low of July 24.
Second target of the position is at 247.85 at the lower pivot point support.

SL is positioned at the 249.48 above the hourly resistance level


The pair broke the trend line down; we can see that the middle line of the Fibonacci fan is being crossed downward. The MACD lines crossed the zero line downward. The RSI is in a down trend and pointing to the continuation of the sell trend on the pair.

The momentum oscillator and the stochastic are in a down trend when the K% lines cross the D% line downward.

* The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.

dealingdesk@finotec.com