The British Pound Has Reached Key Support Levels

• 7 May 2018

GBP/AUD

The GBP/AUD pair is indicates that the Pound is making a recovery after a significant sell-off. Several breaks of the lower Bollinger band indicate the pair is oversold. RSI confirms the oversold conditions and is undergoing a momentum reversal. A close of the current day’s candle above the lower Bollinger band would confirm a change in sentiment.

GBP/CAD

The GBP/CAD pair has reached a fairly significant support level which may represent a reversal point for the pair. Several breaks of the lower Bollinger band indicate that the pair has reached a statistical extreme. RSI has begun to climb above the 30 support level which may be the first sign of a reversal.

GBP/JPY

The GBP/JPY pair is testing the 147.93 price level as the pair stalls amidst a strong sell-off. Again, a reversal of bearish momentum appears to be underway as RSI moves away from the 30 support level and price action appears to be more bullish.

GBP/USD

The GBP/USD pair presents with a sharp downward trajectory as bearish sentiment causes the Pound to suffer. However, there are signs that the bearish momentum is beginning to decelerate. A series of doji candles after breaks of the lower Bollinger band could suggest a reversal is imminent. RSI also indicates the pair is strongly oversold and MACD appears to be beginning a momentum reversal.