The Pound: will the bears win the market without news?

The pound was down against the dollar on Tuesday. However, the very nature of the movements, as in the case of the euro rate, was far from ideal and straightforward.

The mixed dynamics is clearly visible on the 30-minute timeframe, where the rate consolidated above a strong downtrend line with four pivots. The chart first crossed this line and then decided to resume the downward movement.

The Pound: will the bears win the market without news? - 1

It was as if the obvious buy signal turned out to be false, and it was possible to exit from it by the downward reversal of the MACD indicator.

In general, it turns out that the downward trend of the pound has continued, but at the same time, the annual lows set on November 30th have not been updated so far. It should also be noted that during Tuesday, neither the UK nor the US saw a single important event or publication of economic data. They will not be there today either. Despite this, the volatility increased yesterday, and today, during the session, more calm movements are expected.

On the 30-minute timeframe, the pound continues to have a downward trend. Earlier today, the downtrend line was broken, so both the continuation of the fall and a rematch, in which traders will try to return the rate above it, is possible. In general, the worsening epidemiological situation and the introduction of quarantine by the authorities of European countries make investors expect a drop in activity and sentiment by the end of the week.

Alex Kuptsikevich

Financial market professional with 16-years' experience and Senior financial analyst at FxPro. Author of daily reviews on the impact of economic events with comments regularly featured in top international and Russian media. Covers fundamental analysis, global markets, foreign exchange market, gold, oil, cryptocurrencies.

Alex Kuptsikevich is a regular contributor to both digital and print media including CNBC, Forbes, Reuters, MarketWatch, BBC and Coindesk.