GBPUSD: Awaiting Rate Hike Signals, Trend Reversal Risk
Updated
GBPUSD is currently in a short-term uptrend. The EMA 34 is above the EMA 89, indicating that buying pressure still dominates the market.
The chart shows that the EMA 34 remains above the EMA 89, but if there is a downward correction, the EMA 34 could potentially cross below the EMA 89, signaling a bearish trend.
The RSI (14) is currently at 52-54, suggesting that upward momentum remains but is close to the overbought region. If it surpasses 70, there might be a correction or a bearish reversal.
If the price fails to break through the resistance level of 1.32800, GBPUSD might revisit the support level of 1.30600.
Regarding news: Investors are awaiting interest rate signals from the Fed; if rates are increased, the USD will strengthen, putting downward pressure on GBPUSD. The BoE also faces pressure to adjust rates due to high inflation and the challenging economic conditions in the UK.
The chart shows that the EMA 34 remains above the EMA 89, but if there is a downward correction, the EMA 34 could potentially cross below the EMA 89, signaling a bearish trend.
The RSI (14) is currently at 52-54, suggesting that upward momentum remains but is close to the overbought region. If it surpasses 70, there might be a correction or a bearish reversal.
If the price fails to break through the resistance level of 1.32800, GBPUSD might revisit the support level of 1.30600.
Regarding news: Investors are awaiting interest rate signals from the Fed; if rates are increased, the USD will strengthen, putting downward pressure on GBPUSD. The BoE also faces pressure to adjust rates due to high inflation and the challenging economic conditions in the UK.
Trade active
GBP/USD is trading near its lowest level in the past two months, hovering around the 1.2600 mark. The weakness in the British pound is primarily due to the strengthening of the USD and concerns about the economic outlook of the United Kingdom. Investors are being very cautious with GBP, especially as the Bank of England (BoE) may face challenges in adjusting monetary policy amid signs of a slowing economy.Trade active
As of September 4, 2024, GBP/USD is in a bearish correction, trading around 1.3122. The pair is testing support near 1.3045, with potential for a bounce leading to a target of 1.3435. However, if it breaks below 1.2975, further declines toward 1.2765 may occur.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.