There are many indications that current USD/GBP and EUR/GBP rates are reinforcing recent trading ranges. The latest market trends indicate that, the bearish sentiment is not going to go away anytime soon.
Market trends indicate that, as the USD/GBP exchange rate strengthened against the Euro, the RSI has also responded by strengthening, suggesting that the market might be interested in taking a longer term view, rather than just an immediate view of events. This suggests that, the USD/GBP exchange rate will probably continue to strengthen against the Euro for quite some time.
The RSI has been significantly stronger, indicating a higher probability of a move toward the GBP/USD on the RSI. This suggests that the traders will probably continue to position and hedge with the GBP/USD.
The latest market trends suggest that, there is currently some support at around $89.00 and here is the area where the bears might come up short, as the sellers can take advantage. Bearish sentiment is likely to remain strong, given the prevailing market trend.
The fact that support levels have been strengthened by this move also makes the possibility of a stronger move toward the GBP/USD even stronger. This implies that the current bearish trend could end in a significant move toward the GBP/USD in the coming days.
At the moment, the GBP/USD might not only stabilize but may even widen the trading range to $100.00. That would imply that the selloff in GBP/USD may now start at around the break of $90.00.
The fact that support levels have been strengthened by this move also makes the possibility of a stronger move toward the GBP/USD even stronger. The new break for the GBP/USD is likely to be around the $92.00 level, which should result in a move toward the USD/GBP exchange rate.
The bearish sentiment in the GBP/USD may hold until the new resistance level has been reached, at which point the market will likely be unable to sustain further weakening. At this point, it is very unlikely that the currency pairs will move into a new sustained strength.
Market trends also indicate that, the GBP/USD might be closing in on a new support level at around $91.00. This is the area where the bears might try to make a strong move toward the USD/GBP exchange rate.
The latest market trends also suggest that, the GBP/USD might be closing in on a new resistance level at around $92.00. This is the area where the bears might try to make a strong move toward the USD/GBP exchange rate.
There are also indications that, the bears may be re-orienting their confidence and they may try to clear the trade line, which would indicate that the market might be ready to close the triangle and open up the following session. However, the EUR/GBP pair may still hold, which would indicate that the bearish trend may be highly resistant to reversal.