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GBPUSD recovery remains unconvincing ahead of UK inflationGBPUSD holds onto the recovery from an early February rebound from a three-month-old ascending support line, staying beyond the 100-day EMA to lure more bids. Adding strength to the upside bias is the upward-sloping RSI (14) line and the recently upbeat MACD signals. However, the previous support from early November, near 1.2265, acts as an immediate hurdle to challenge the bulls. Following that, a horizontal area comprising multiple tops marked since December, near 1.2450, appears crucial for the Cable buyers to tighten the holds, a break of which could propel prices towards May 2022 peak surrounding 1.2665. On the flip side, the 100-day EMA level surrounding 1.2040 and the 1.2000 psychological magnet challenge short-term pullbacks of the GBPUSD. That said, a clear downside break of the 1.2000 mark needs validation from the aforementioned support line from November 17, close to 1.1965 at the latest, to convince bears. In a case where the quote remains weak past 1.1965, the odds of witnessing a slump towards January’s low near 1.1840 and the mid-November 2022 bottom surrounding 1.1760 can’t be ruled out. Overall, GBPUSD remains on the bear’s radar despite the latest run-up, which in turn highlights today’s UK Consumer Price Index (CPI) for clear directions.
by MTradingGlobal
GBPUSD reverses from 200-SMA ahead of UK GDPGBPUSD pares the early-week recovery from 78.6% Fibonacci retracement of January 06-23 upside while taking a U-turn from the 200-SMA hurdle. The pullback also take justifies the downbeat RSI and MACD conditions, suggesting further declines towards 61.8% and 78.6% Fibonacci retracement levels, around 1.2070 and 1.1970 in that order. It’s worth noting, however, that the GBP/USD pair’s weakness below 1.1970 will make it vulnerable to drop toward the previous monthly low of near 1.1840. Alternatively, a successful break of the aforementioned key SMA hurdle surrounding 1.2190 isn’t an open invitation to the GBPUSD buyers. That said, the 1.2200 and late January swing low around 1.2265 could challenge the Cable buyers before the three-week-old resistance line of 1.2370. In a case where the quote remains firmer past 1.2370, the two-month-long horizontal area around 1.2440-50 appears a tough nut to crack for the bulls. To sum up, GBPUSD braces for the key UK Q4 GDP which is likely to disappoint.
by MTradingGlobal
GBPUSD bulls run out of steam on BOE-inspired Super ThursdayBe it a one-month-old rising wedge or the overbought RSI conditions, GBPUSD shows it all to suggest that the bull’s reign is near to end. However, a sustained trading below the 1.2330 support, comprising the lower line of the aforementioned rising wedge bearish chart pattern, becomes necessary for the seller’s entry. Even so, the 200-DMA level surrounding 1.2100 could challenge the bears. Following that, a downward trajectory towards the 1.2000 psychological magnet and then to September’s peak surrounding 1.1740 can’t be ruled out. It’s worth noting that the rising wedge confirmation signals a theoretical target of around 1.1000. Meanwhile, the upper line of the stated wedge, close to 1.2550, could act as an immediate upside hurdle to watch during the Cable pair’s further advances. In a case where the GBPUSD bulls defy the bearish chart pattern by crossing the 1.2550 hurdle, the 78.6% Fibonacci retracement level of the pair’s south-run from late March to September, near 1.2675, could lure the buyers. It’s worth noting that the mid-March low close to the 1.3000 psychological magnet and late March swing high near 1.3300 will be in focus if the quote remains firmer past 1.2675. Overall, GBPUSD is up for further downside as the BOE looms. However, a surprise hawkish outcome could allow the bulls to have a few more happy days.
by MTradingGlobal
GBPUSD bulls run out of steam as 2022 is near to endGBPUSD posted the biggest monthly gains since mid-2020 in November. However, the latest bullish trajectory appears doubtful as the pair stays beneath a one-month-old previous support line. That said, the 50-SMA restricts the pair’s immediate downside near 1.1985. Following that, the 100-SMA level surrounding 1.1860 could act as the last defense of the pair buyers before directing bears towards the 50% Fibonacci retracement level of November 04-24 upside, near 1.1650. Meanwhile, the upside break of the stated support-turned-resistance line, around 1.2190. Although the RSI conditions may turn overbought and challenge further advances near 1.2190, a successful run-up won’t hesitate to aim for the August month’s high near 1.2295. It should be noted that the GBPUSD pair’s sustained trading beyond the 1.2300 round figure should give a free hand to bulls targeting the mid-2020 peak surrounding 1.2665, with 1.2405 likely acting as a buffer.
by MTradingGlobal
GBPUSD remains on the bull’s radarGBPUSD remains sidelined since the last Wednesday and retreats from its intraday high so far on Monday. Even so, a 13-day-old ascending trend channel defends the pair buyers. More immediately, a convergence of the 50-EMA and an upward-sloping trend line from early October, around 1.1760, restricts the quote’s nearby downside. Following that, the aforementioned channel’s lower line, close to 1.1720, will be crucial as a downside break of the same will direct bears towards the monthly low surrounding 1.1140. Alternatively, 1.1960 and the 1.2000 psychological magnet will precede the monthly peak surrounding 1.2030 to challenge the GBPUSD pair buyers during the quote’s fresh upside. Following that, the upper line of the previously mentioned channel, close to 1.2240, could restrict the pair’s further advances. In a case where the Cable pair rises past 1.2240, the August month high near 1.2295 will be in focus. Overall, GBPUSD stays on the bull’s radar despite the recently downbeat performance.
by MTradingGlobal
GBPUSD buyers are all set to confront the 1.2030 hurdleGBPUSD bulls approach the key resistance line, stretched from mid-June, ahead of the UK’s employment numbers. The cable pair’s upside momentum takes clues from its successful trading beyond the 100-DMA, as well as the bullish MACD signals. However, nearly overbought RSI conditions could restrict further advances near an aforementioned resistance line, around 1.2030 at the latest. Even if the quote manages to cross the 1.2030 upside barrier, the 78.6% Fibonacci retracement of the pair’s June-September downside and the 200-DMA could challenge the run-up respectively near 1.2170 and 1.2255. In a case where the quote remains firmer past 1.2255, the odds of witnessing a run-up toward the mid-2022 peak of 1.2666 can’t be ruled out. Alternatively, a daily closing below the 100-DMA level surrounding 1.1655 needs validation from the previous monthly top, close to 1.1645, to recall the GBPUSD bears. Even so, the 50% Fibonacci retracement level around 1.1500 appears strong support for the sellers to crack before eyeing a convergence of the monthly ascending trend line and 38.2% Fibonacci retracement, near the 1.1230-25 area. Should the pair remains bearish past 1.1230, the previous monthly low near 1.0920 will gain the market’s attention. Overall, GBPUSD buyers are likely to keep the reins but the upside room appears limited.
by MTradingGlobal
GBPUSD must defend 1.1360 level to keep bears away on BOE dayGBPUSD grinds lower so far during November, after posting the biggest monthly gains since July 2020. The intraday moves are slightly positive even if the bulls seem to run out of steam ahead of the Bank of England’s (BOE) monetary policy announcements on Thursday. That said, the buyers are safe unless the quote trades beyond the 1.1360 support confluence including the 50-DMA and a lower line of the monthly ascending triangle. Following that, a slump toward October’s low near 1.0920 can’t be ruled out. During the fall, the 1.1000 psychological magnet may offer an intermediate halt whereas 1.0830 and 1.0680 might entertain the bears afterward, before directing them to the all-time low marked in September near 1.0350. Meanwhile, recovery moves could initially aim for the stated triangle’s resistance line, close to 1.1700 at the latest, before challenging the descending resistance line from late May, around 1.1750 by the press time. In a case where the GBPUSD prices remain firmer past 1.1750, the odds of witnessing a run-up toward the 1.2000 psychological magnet can’t be ruled out. It’s worth noting that the 61.8% Fibonacci retracement level of the May-September downside and the late August swing high, respectively near 1.1775 and 1.1900, may act as buffers during the rise from 1.1750 to 1.2000. Overall, GBPUSD remains on a bullish trend and the BOE is also expected to try all the means to regain the market’s confidence. However, it's what they actually and how it is perceived that will determine the Cable pair’s further directions.
by MTradingGlobal
GBPUSD upside remains elusive below 1.1400The US dollar’s decline versus most currencies on Friday allowed GBPUSD to bounce off a three-week-old support line. The recovery, however, needs validation from a monthly resistance line, around 1.1400 by the press time. Following that, the monthly high around 1.1490 may act as an intermediate halt before directing bulls towards September’s top surrounding 1.1740. In a case where the quote rises past 1.1740, July’s low near 1.1760 appears the last defense of bears ahead of highlighting the 1.2000 psychological magnet for the buyers. Meanwhile, sellers remain confused unless the quote stays beyond an upward-sloping support line from September 29, close to 1.1060 by the press time. Should GBPUSD sellers manage to conquer the 1.1060 support, a south-run towards the monthly low, currently around 1.0925, can’t be ruled out. Furthermore, the quote’s weakness past 1.0925 could take halts near 1.0760 and 1.0630 before revisiting the record low flashed the last month, around 1.0355. Overall, GBPUSD pares the previous monthly losses but it isn’t out of the woods.
by MTradingGlobal
GBPUSD needs to cross and stay beyond 1.1500 to convince buyersGBPUSD seesaws around a monthly resistance line, after successfully crossing the 200-SMA, as buyers await the UK inflation data. In addition to the stated trend line hurdle surrounding 1.1330, the 78.6% Fibonacci retracement level of September 13-26 downside, near 1.1435 and the monthly peak of 1.1495 could challenge the quote’s further upside. It’s worth noting that the pair’s sustained run-up beyond the 78.6% Fibonacci retracement level will need validation from the 1.1500 round figure to give control to buyers. Following that, a rally towards crossing the previous monthly top around 1.1740 can’t be ruled out. Meanwhile, pullback moves are unimportant beyond the 200-SMA level surrounding 1.1280. In a case GBPUSD drops back below the key SMA support, an upward-sloping support line form stretched from September 28, close to 1.1110, will be important to watch. Additionally, a three-week-old horizontal area near 1.0930-20 appears a last defense of the Cable buyers, a break of which could quickly direct the quote towards the 23.6% Fibonacci retracement level of 1.0670 and the September 29 swing low around 1.0540 before highlighting the all-time bottom of 1.0345 flashed the last month. Overall, GBPUSD tries to convince buyers but the road to the north is a long and bumpy.
by MTradingGlobal
GBPUSD braces for further downside, 1.0930-20 eyed immediatelyGBPUSD holds onto the previous week’s downside break of the 50-SMA and a two-week-old support line, now resistance around 1.1160. Although the nearly oversold RSI suggests limited room towards the south, the bearish MACD signals keep the bears hopeful. That said, a horizontal area comprising the lows marked during late September, around 1.0930-20, lures intraday sellers. Following that, 1.0630 may offer an intermediate halt before directing the bears towards the record low printed in the last month around 1.0345. Alternatively, any recovery appears elusive unless the GBPUSD pair remains below 1.1160. Even if the cable pair crosses the 1.1160 hurdle the 61.8% Fibonacci retracement of late August-September downside, near 1.1320, will check the buyers. It should be noted that a downward-sloping resistance line from August 26, close to 1.1450 by the press time, seems the last defense of the bears, a break of which could trigger a short-term bullish trend. Overall, GBPUSD is on the way to the all-time low marked in the last month. However, the bears need validation from 1.0920 and the UK jobs report scheduled for publishing today.
by MTradingGlobal
GBPUSD faces uphill task to extend the latest reboundGBPUSD remains inside an eight-day-old bullish channel, as well as the 100-SMA, suggesting further upside. However, the 200-SMA and a downward sloping resistance line from August 26, respectively around 1.1430 and 1.1480, appear tough nuts to crack for the pair buyers. Also challenging the north-run is the RSI conditions which gradually approach the overbought territory. Even if the quote crosses the 1.1480 resistance, the aforementioned channel’s resistance line, near 1.1670, could challenge the cable buyers. Alternatively, the stated channel’s support line and the 100-SMA, around 1.1280 and 1.1200 in that order, act as the trigger for GBPUSD’s fresh selling. Following that, tops marked during late September, around 1.0930-15, could lure the bears. In a case where the prices remain weak past 1.0915, the year 1985 low near 1.0520 and the record low marked in the last month around 1.0345, will regain the market’s attention. Overall, GBPUSD fades upside momentum but the bears need to justify their strength to retake control.
by MTradingGlobal
GBPUSD stays on bear’s radar unless crossing 1.1280GBPUSD holds onto the rebound from an all-time low, marked the previous day, amid oversold RSI conditions. The recovery also crossed the previous record bottom printed in 1985. However, the 1.1000 round figure and a downside sloping support-turned-resistance line from May, around 1.1280 by the press time, restricts the Cable pair’s immediate rebound. Also acting as an upside filter is the year 2020 bottom surrounding 1.1420. Alternatively, the GBPUSD pair’s fresh weakness needs acceptance from Monday’s opening levels of around 1.0800, as well as the year 1985 bottom close to 1.0520. In a case where the quote remains bearish past 1.0520, the 1.0500 threshold and the latest trough surrounding 1.0340 could lure the sellers. It’s worth noting, however, that the pair’s weakness past 1.0340 could make it vulnerable to testing the 1.0000 psychological magnet. Overall, GBPUSD is likely to witness a corrective bounce but the buyers are far from retaking control.
by MTradingGlobal
GBPUSD breaks 1.1290 support ahead of BOE announcementsGBPUSD renews 37-year low, breaking four-month-old support line and 61.8% Fibonacci Expansion (FE) of the GBPUSD pair’s moves between August 17 and September 13, close to 1.1290, as traders await the Bank of England’s (BOE) monetary policy updates. Though the cable pair broke the nearby key support, now resistance around 1.1290, oversold RSI conditions and a likely positive surprise from the “Old Lady”, as the BOE is popularly known, tease the Cable pair buyers. In that case, the 5-DMA and a six-week-old resistance line, respectively around 1.1410 and 1.1560, could challenge the bulls. Following that, a one-month-long horizontal resistance area will precede the 50-DMA to restrict the quote’s further upside around 1.1740 and 1.1845 in that order. Alternatively, the 78.6% Fibonacci Expansion (FE) level near 1.1160 lures the GBPUSD bears unless it stays below 1.1290. In a case where the Cable pair drops below 1.1160, the odds of witnessing a slump towards the 1.1000 psychological magnet can’t be ruled out. Overall, GBPUSD seemed to have a little downside room ahead of the anticipated hawkish BOE.
by MTradingGlobal
GBPUSD recalls bears targeting 1.1400, UK CPI in the spotlightGBPUSD seesaws below 50-SMA after breaking the weekly support line, not to forget to mention the reversal from a three-week-old horizontal hurdle. The pullback also takes clues from the downside RSI and MACD to suggest further downside towards the yearly low marked the last week around 1.1400. It should, however, be noted that a 61.8% Fibonacci Expansion (FE) of August 17 to September 13 moves, near 1.1280, could challenge the pair sellers afterward. If not then, the downward sloping support line from August 22, close to 1.1230 by the press time, will gain the market’s attention. Meanwhile, the GBPUSD rebound remains elusive unless crossing the one-month-old horizontal resistance area near 1.1745-50. That said, the one-week-long support-turned-resistance around 1.1630 guards the immediate recovery. If at all the cable pair rises past 1.1750, the 200-SMA level surrounding 1.1890 could act as the last defense for bears, a break of which could give control to the buyers. Overall, GBPUSD is back into the bear’s court and is likely to renew the yearly low ahead of the key UK inflation numbers.
by MTradingGlobal
GBPUSD eyes 1.1730 on bullish RSI divergence, channel breakoutGBPUSD crosses the monthly bearish channel, also the 50-SMA hurdle, after briefly declining to the lowest levels since 1985. The corrective bounce takes support from the bullish RSI divergence where the lower low on the prices contrasts with the higher low of the RSI (14), which in turn suggests brighter chances of the pair’s recovery. As a result, the buyers are on the way to the three-week-old horizontal resistance area near 1.1730-40. Should the quote manage to remain firmer past 1.1740, the 1.1900 and the 1.2000 thresholds could please the bulls afterward. Meanwhile, the stated channel’s upper line acts as the immediate support for the pair, around 1.1500. Following that, the weekly descending trend line surrounding 1.1400 seems to restrict short-term GBPUSD downside ahead of the lower line of the aforementioned bearish channel, close to 1.1340 at the latest. It’s worth noting, that the pair’s south-run past 1.1340 could keep grinding the quote slowly towards the 1.1000 psychological magnet. In a case where the pair remains bearish past 1.1000, the low marked in the year 1985 near 1.0520 will regain the market’s attention. To sum up, GBPUSD seems to have seen enough of the downside and the bull’s turn is just around the corner. However, the fundamentals are the key and should be read carefully for clear directions.
by MTradingGlobal
GBPUSD bears stay on the way to 1.1890GBPUSD extended pullback from 100-SMA to refresh monthly low, before the recent corrective pullback near 1.1900. In doing so, the Cable pair also broke below the support area of a fortnight-old descending triangle. The downside break also takes clues from the bearish MACD signals, suggesting more to run towards the south. However, the late July swing low around 1.1890 will be in focus as the RSI quickly approaches the oversold territory and teases a bounce. Should the price remain weak past 1.1890, the yearly low marked in the last month, close to 1.1760 should lure the sellers. Alternatively, recovery moves could initially aim for the triangle’s upper line, at 1.2080 by the press time, a break of which could escalate the direct buyers towards the 100-SMA level surrounding 1.2130. It’s worth noting that multiple hurdles around 1.2200 could challenge the GBPUSD buyers afterward. Should the quote remain firmer past 1.2200, the odds of its refreshing the monthly top, close to 1.2190 at the latest can’t be ruled out. Overall, GBPUSD bears keep the reins but oversold RSI suggests limited room to the south.
by MTradingGlobal
GBPUSD bulls step back from key resistance ahead of UK GDPGBPUSD retreats from the 11-week-old descending trend line as the traders await the first readings of the Q2 2022 UK GDP. In addition to the trend line hurdle, the 38.2% Fibonacci retracement of the March-July downside, near 1.2345, guards the pair’s immediate upside. Following that, the 100-DMA hurdle surrounding 1.2435 will be in focus. In a case where the quote remains strong past 1.2435, the odds of witnessing a run-up towards May’s peak of 1.2665 can’t be ruled out. On the contrary, GBPUSD sellers can aim for the 21-DMA support near 1.2075 during further weakness. It’s worth noting, however, that the quote’s downside beneath 1.2075 will have the two-month-old resistance-turned-support line, around 1.1955, as the last defense for buyers. In a case where the quote remains weak past 1.1955, the odds of its south-run towards the yearly low near 1.1860 can’t be ruled out. Overall, GBPUSD bulls are in the driver’s seat ahead of the key UK GDP data. It should be observed that the British economy is likely to witness recession and hence positive surprise will be welcomed with zeal considering the pre-data bullish bias.
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by MTradingGlobal
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GBPUSD bulls losing strength ahead of BOEGBPUSD extends early-week pullback from a 2.5-month-old resistance line around a lower line of the bullish channel connecting multiple levels marked since mid-July. Considering the recently downbeat RSI and MACD conditions, as well as the Cable pair’s U-turn from the key resistance line, the sellers are likely to defy an upward sloping trend channel by keeping reins below 1.2120 nearby support. With this, a slump to the 200-SMA level surrounding 1.2080 appears imminent. However, multiple supports around 1.2050, the 1.2000 psychological magnet and the 1.1980 levels could test the bears afterward. In a case where the quote remains bearish below 1.1980, the odds of witnessing a fresh yearly low, currently around 1.1760, can’t be ruled out. Meanwhile, recover moves need to cross the 10-week-long resistance line, at 1.2250 by the press time, to recall GBPUSD buyers. Even so, the 61.8% Fibonacci retracement of the May-July downturn and the aforementioned channel’s upper line, respectively near 1.2320 and 1.2335, could challenge the bulls. It should be observed that the pair’s upside past 1.2335 needs validation from the mid-June swing high surrounding 1.2405 before directing the north-run to 78.6% Fibonacci retracement level and May’s peak, around 1.2475 and 1.2665 in that order. To sum up, GBPUSD fades upside momentum ahead of the key Bank of England (BOE) monetary policy. The British central bank is expected to announce a 0.50% rate hike but the details surrounding the economic conditions of the UK might favor the pair sellers.
by MTradingGlobal
Technical Analysis: GBPUSD bulls need validation from 1.2110GBPUSD refreshed a three-week high on Tuesday while extending the breakout of 100-SMA. However, a convergence of the 200-SMA and a downward sloping trend line from June 16, around 1.2110 appears a tough nut to crack for the Cable pair buyers. Given the RSI’s nearness to the overbought territory, the upside momentum is less likely to overcome the key hurdle. However, a successful break of the 1.2110 could quickly propel the quote towards the June 30 peak near 1.2190. It’s worth noting that multiple resistances around 1.2230 and 1.2325-30 could challenge the pair buyers beyond 1.2190, before directing them to the previous monthly peak of 1.2405. Meanwhile, pullback moves may dribble around 1.2050-45 and the 100-SMA level surrounding 1.1960. Following that, an ascending support line from mid-July, close to 1.1940, will be crucial to watch for further downside. In a case where the GBPUSD prices remain weak past 1.1940, the 1.1800 round figure may act as an intermediate halt before directing the bears toward the monthly low, also the yearly bottom, surrounding 1.1760. Overall, GBPUSD bulls approach the key resistance, a break of which can reverse the downtrend, at least for the short term.
by MTradingGlobal
GBPUSD buyers jostle with key resistance around 1.2030GBPUSD's rebound dribbles around a one-week high while extending Friday’s upside break of a descending resistance line from June 27, now support. The Cable pair’s recovery also takes clues from the firmer RSI and the bullish MACD signals to keep buyers hopeful. However, sustained trading beyond convergence of the 100-SMA and a downward sloping trend line from June 07, around 1.2030, becomes necessary for the bulls to retake control. Should the quote manage to stay firmer past 1.2030, a run-up towards the monthly high near 1.2175 can’t be ruled out. Though, multiple hurdles stay firer to challenge the quote’s upside past 1.2175, a break of which could propel the prices towards the mid-June high near 1.2400. Meanwhile, a weekly support line, close to 1.1990, could challenge the GBPUSD sellers. Following that, the resistance-turned-support from late June and the recently flashed multi-month low, respectively around 1.1820 and 1.1775, will be in focus. It’s worth noting that the pair’s sustained downtrend below 1.1775 could make it vulnerable to slump towards March 2020 bottom close to 1.1400. Overall, GBPUSD recovery pokes the key resistance confluence as traders brace for important UK data, starting with today’s UK employment report.
by MTradingGlobal
GBPUSD bears have a bumpy road to the south at multi-month lowBe it recession fears or the UK’s political crisis, GBPUSD has to bear it all as it dropped to the lowest level since March 2020. However, the cable pair appears to have a limited downside room before hitting the key supports. That said, a nearly oversold RSI and a falling wedge bullish chart pattern near the multi-month low also tease buyers to take the risk. It should be noted, however, that a downside break of the 1.1770 mark, comprising the wedge’s support line and 78.6% Fibonacci Expansion (FE) of late March-May moves, will defy the bullish hopes. Following that, the 100% FE level surrounding 1.1520 may offer an intermediate halt before dragging the quote to the year 2020 bottom close to 1.1410. Meanwhile, recovery moves may initially struggle around the 61.8% FE level near 1.1950 before regaining the 1.2000 mark. Though, bulls will be interested in seeing a successful break of the 1.2100 mark as it confirms the falling wedge bullish formation. In that case, theory suggests a run-up towards the 1.2800 round figure but the 50-DMA and May’s top could challenge the buyers respectively around 1.2360 and 1.2565. Overall, GBPUSD sellers appear to have run out of steam but the bulls need validation.
by MTradingGlobal
GBPUSD stays ready to refresh yearly low ahead of UK/US PMIsGBPUSD fades bounce off yearly low as the cable traders await the UK and the US preliminary PMIs for June. Bearish MACD signals and steady RSI also backs the downside bias. That being said, May’s low of 1.2155 and the 1.2000 psychological magnet can act as immediate supports ahead of the latest trough surrounding 1.1933. In a case where the pair sellers dominate past 1.1933, the 78.6% Fibonacci Expansion (FE) of late March-May moves, near 1.1760, as well as a downward sloping trend line from mid-March around 1.1590, will be in focus. On the contrary, a convergence of the 20-DMA and a two-month-old horizontal area surrounding 1.2410-20 appears a tough nut to crack for the GBPUSD bulls during the recovery. Adding to the upside filters is a 10-week-long resistance line and 50-DMA, respectively around 1.2460 and 1.2510. It’s worth noting that a clear upside break of the 1.2510 enables the pair buyers to aim for May’s top of 1.2666. To sum up, GBPUSD is likely to remain bearish unless the quote rises past 1.2510. Considering that, today’s PMIs are less likely to offer any incentive to buyers unless being extremely strong, which is less expected.
by MTradingGlobal
GBPUSD rebound appears necessary as cable traders await BOEGBPUSD fades the corrective pullback from a two-year low, as well as the 61.8% FE level of late March-May moves. Also supporting the bounce was the oversold RSI condition. However, the Bank of England’s (BOE) looming rate hike keeps buyers on their toes due to the “Old Lady’s” previous failures to impress. That said, the recovery moves currently need a clear upside break of the previous monthly low of 1.2155 to convince buyers. Should the BOE manage to favor the bulls, a run-up beyond the 1.2155 could aim for a seven-week-old horizontal resistance zone surrounding 1.2410-20. It’s worth noting that the cable pair’s run-up past 1.2420 remains doubtful as a descending resistance line from February precedes the 50-DMA, respectively around 1.2500 and 1.2610, to challenge the optimists. On the contrary, the 1.2000 threshold acts as the immediate support ahead of the 61.8% FE level of 1.1960. During the GBPUSD pair’s weakness past 1.1960, the 78.6% FE and a downward slopping support line from March, around 1.1760 and 1.1700 in that order, will be crucial to watch as the RSI might have offered another corrective bounce by then. If not then the quote becomes vulnerable to testing the 100% FE level of 1.1510. Overall, GBPUSD is likely to extend the latest recovery as traders position themselves for the BOE. However, the upside momentum remains elusive.
by MTradingGlobal