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GBPUSD stays pressured on UK inflation dayGBPUSD prints mild losses below 1.2200 during early Wednesday as market players await the UK inflation data while consolidating the week-start gains of the Cable pair. That said, a likely easing inflation pressure in Britain joins the downbeat RSI (14) and the impending bear cross on the MACD keeps the pair sellers hopeful. With this, the quote’s fall toward the 78.6% Fibonacci retracement of March-July upside, near 1.2090, becomes imminent. However, a seven-month-old upward-sloping support line surrounding 1.2070 appears a tough nut to crack for the pair sellers afterward. In a case where the bears manage to conquer the 1.2070 support, the 1.2000 psychological magnet and March’s bottom of around 1.1800 will be in the spotlight. On the contrary, GBPUSD recovery needs validation from the strong UK inflation data and the US Dollar’s weakness to convince intraday buyers. Additionally, a three-month-long descending trend line, close to 1.2280 at the latest, holds the key to the bull’s conviction. Following that, the Cable pair’s run-up toward the 200-day SMA level of around 1.2445 can’t be ruled out. It’s worth observing that the Pound Sterling’s successful trading above 1.2445 will aim for August month’s low of around 1.2550 while May’s high of 1.2680 could lure the optimists after. Overall, GBPUSD is likely to witness further downside but the road toward the south is long and bumpy.
by MTradingGlobal
GBPUSD rebound appears elusive below 1.2510GBPUSD seesaws at a three-week high ahead of the UK data dump, probing a six-day winning streak. However, the RSI (14) line steadies near the overbought region and joins a looming bear cross on the MACD to suggest that the bulls are running out of steam. With this, a pullback towards the late September swing high of around 1.2270 becomes imminent but a convergence of the 100-SMA and 23.6% Fibonacci retracement of the pair’s August-October downturn, near 1.2215, appears a tough nut to crack for the Cable bears afterward. Even if the quote drops below 1.2215, the previous resistance line stretched from late August, close to 1.2090 by the press time, will precede the monthly low of around 1.2035 and the 1.2000 threshold to act as final defenses of the Pound Sterling buyers. Meanwhile, the 38.2% Fibonacci ratio of nearly 1.2320 guards the immediate recovery of the GBPUSD pair ahead of the 200-SMA hurdle of 1.2375. Following that, the 50% Fibonacci retracement surrounding 1.2415 can lure the Cable bulls. Above all, the 1.2510 resistance confluence comprising a convergence of the seven-week-long descending trend line and the 61.8% Fibonacci retracement, also known as the Golden Ratio, will challenge the Pound Sterling buyers before giving them control. In a case where the pair remains firmer past 1.2510, the odds of witnessing a run-up towards the August 30 peak of around 1.2750 can’t be ruled out. To sum up, the bullish momentum fades but the road toward the south is long and bumpy while the upside needs validation from 1.2510.
by MTradingGlobal
GBPUSD appears vulnerable to test multi-month-old support lineGBPUSD remains pressured at the lowest level in seven months, reversing the previous week’s corrective bounce, as the Cable traders await final prints of the UK S&P Global/CIPS PMIs for September. It’s worth noting that a clear downside break of an eight-month-old horizontal support zone joins the bearish MACD signals to keep the Pound Sterling bears hopeful. However, the oversold RSI (14) line and 50% Fibonacci retracement of October 2022 to July 2023 upside, near 1.2040, restricts the immediate downside of the pair. Following that, the 1.2000 psychological magnet and an ascending support line from November, close to 1.1890 by the press time, will entertain the bears. In a case where the quote remains bearish past 1.1890, the 61.8% Fibonacci ratio of around 1.1780 will be the last defense of the buyers. On the contrary, the previous weekly low of around 1.2110 restricts the nearby downside of the GBPUSD pair ahead of the 10-SMA level surrounding 1.2170. More importantly, the support-turned-resistance area comprising multiple levels marked since February, near 1.2310–2270, appears a tough nut to crack for the Cable pair buyers to cross past 1.2170. Should the Pound Sterling remain firmer past 1.2170, a three-month-long descending resistance line surrounding 1.2470 will be crucial for the bulls to cross before retaking control. Overall, GBPUSD is likely to remain bearish even as the downside room appears limited.
by MTradingGlobal
GBPUSD jostles with multi-month-old support around 1.2200GBPUSD stays depressed at the six-month low even as bears struggle with a horizontal area comprising multiple levels marked since early February. Also challenging the downside bias is the oversold RSI (14) line. With this, a corrective bounce toward May’s bottom of around 1.2310 can be witnessed. However, the 200-SMA on the daily chart, around 1.2435 at the latest, appears a tough nut to crack for the Cable pair buyers afterward. Even if the Sterling manages to cross the 1.2435 hurdle, a downward-sloping resistance line from July, close to 1.2540 by the press time, will act as the last defense of the pair bears. On the contrary, the Pound Sterling’s sustained weakness beneath the 1.2200-2190 key support zone could quickly drag it to the 38.2% Fibonacci retracement of September 2022 to July 2023 upside, near 1.2090. Following that, the 1.2000 psychological magnet and a 10-month-old broad support area surrounding 1.1900-1860, adjacent to the yearly low of around 1.1800, will be in the spotlight. Overall, GBPUSD bears appear running out of steam but the bulls have a long and bumpy road to travel before taking control.
by MTradingGlobal
GBPUSD sellers keep their eyes on 1.2200 and BoE decisionGBPUSD renews a 5.5-month low while extending the previous week’s downside break of the 200-day SMA, as well as drilling the 61.8% Fibonacci retracement of March-July upside. In doing so, the Cable pair ignores the oversold RSI (14) line while taking clues from the bearish MACD signals, which in turn suggests limited downside room for the Pound Sterling. As a result, a horizontal support zone comprising multiple levels marked since early February, around 1.2200, will be the key to watch during the quote’s further downside. In a case where the pair declines below 1.2200, the 78.6% Fibonacci retracement and February’s low, respectively near 1.2090 and 1.1800 will be in the spotlight. That said, the 1.2000 psychological magnet may offer intermediate stops during the pair’s fall towards the 1.1800. On the contrary, a daily closing beyond the 200-day level of around 1.2435 becomes necessary for the intraday buyer’s turn. Even so, the 50% Fibonacci retracement and a downward-sloping resistance line from July, close to 1.2480 and 1.2570 in that order, will be tough nuts to crack for the GBPUSD buyers before retaking control. Should the Pound Sterling remain firmer past 1.2570, May’s peak of around 1.2680 will act as the final defense of the Cable bears. Overall, GBPUSD is likely to remain bearish, unless the Bank of England (BoE) surprises, even as the downside room appears limited.
by MTradingGlobal
GBPUSD recovery hopes to stay valid beyond 1.2430GBPUSD consolidates losses made in the last three consecutive weeks ahead of the UK’s employment report. Adding strength to the recovery momentum is the RSI (14) line’s rebound from the oversold territory, as well as a six-week-old falling wedge bullish chart formation, which in turn suggests an immediate run-up to cross the 1.2600 round figure. However, the upward trajectory needs validation from the stated wedge’s top line, close to 1.2640 by the press time, to highlight the theoretical target of around 1.3190. During the theoretical run-up, the 50-SMA level of around 1.2750, June’s high surrounding 1.2850 and the 1.3000 psychological magnet will act as intermediate halts. Meanwhile, the 50.0% Fibonacci retracement of the pair’s March-July upside, near 1.2470, limits the immediate downside of the GBPUSD pair. That said, a convergence of the 200-SMA and the wedge’s bottom line, close to 1.2430, appears a tough nut to crack for the Cable pair sellers. It’s worth noting that a clear downside break of the 1.2430 support confluence won’t hesitate to quickly drag the Pound Sterling to the 61.8% Fibonacci retracement level surrounding 1.2315 before testing the mid-March swing high of around 1.2200. Overall, GBPUSD buyers are in the driver’s seat ahead of the UK employment data.
by MTradingGlobal
GBPUSD buyers remain hopeful despite latest disappointmentGBPUSD managed to confuse pair sellers last week by defending a one-month-long falling wedge bullish chart pattern despite declining in the later days. Also challenging the Cable pair’s downside is a weeklong rising support line, as well as a nearly oversold RSI (14) line. It’s worth noting, however, that the MACD still flashes the bearish signals and hence the Pound Sterling buyers need to wait for a clear upside break of the stated wedge’s top line surrounding 1.2720, as well as the 200-SMA of near 1.2755, to retake control. That said, a horizontal support-turned-resistance stretched from early August, close to 1.2620, guards the pair’s immediate recovery whereas a clear break of 200-SMA will enable the quote to challenge the yearly top marked in July around 1.3145, with a likely pause in the run-up around the 1.3000 round figure. Meanwhile, a downside break of the immediate one-week-old rising support line surrounding 1.2580 could convince GBPUSD bears to test the falling wedge bullish formation. In doing so, the quote will poke the wedge’s bottom line of around 1.2530. Should the Cable pair sellers dominate past 1.2530, the odds of witnessing a gradual downside toward May’s bottom near 1.2300 can’t be ruled out. Overall, GBPUSD bears run out of steam but the recovery needs validation from 1.2755, as well as this week’s key data/events.
by MTradingGlobal
GBPUSD appears ready for further downside towards 200-SMAGBPUSD remains on the back foot while justifying a downside break of a 5.5-month-old rising support line and the 100-SMA. Also keeping the Cable bears hopeful are the bearish MACD signals. However, the nearly oversold RSI conditions suggest limited room towards the south, which in turn highlights the 200-SMA level of around 1.2400 as the key support. It’s worth noting that the 50% Fibonacci retracement of the March-July fall, close to 1.2470, acts as an immediate check of the sellers while the 61.8% Fibonacci retracement of near 1.2310, also known as the golden ratio, will challenge the sellers past 200-SMA. On the contrary, the GBPUSD pair’s corrective bounce needs validation from the 100-SMA hurdle of 1.2645. Following that, a convergence of the 21-SMA and the previous support line from mid-March, surrounding 1.2700, appears a tough nut to crack for the Cable buyers. In a case where the Pound Sterling remains firmer past 1.2700, the gradual upside toward June’s peak of 1.2848 can’t be ruled out. Overall, GBPUSD appears well set for further downside even if the road towards the south appears bumpy.
by MTradingGlobal
GBPUSD eyes further upside, 1.2830 challenges buyersGBPUSD gained buyer’s attention after snapping a four-week downtrend the last week. Adding strength to the upside bias is the Cable pair’s confirmation of the descending triangle bullish chart pattern. However, a clear upside break of the stated triangle’s upper line, close to 1.2740 by the press time, as well as successful trading beyond the 200-SMA hurdle of 1.2830 becomes necessary for the Pound Sterling bulls to retake control. Following that, the late July swing high of around the 1.3000 psychological magnet will act as a buffer during an expected ride towards challenging the yearly top marked the last month near 1.3145. On the contrary, multiple supports around 1.2700 and 1.2650 restrict the short-term downside of the GBPUSD pair. However, the Cable’s bearish bias remains elusive unless witnessing a clear break of the previously stated triangle’s bottom line, close to 1.2625 by the press time. It’s worth noting that the Pound Sterling’s sustained weakness beneath 1.2625 may seek confirmation from the late June swing low of around 1.2590 before targeting May’s bottom of 1.2310. Overall, GBPUSD lures buyers but the upside needs validation from 1.2830.
by MTradingGlobal
GBPUSD closing in key support ahead of UK employment dataGBPUSD remains on the back foot as the Cable bears attack the bottom line of a six-week-old bullish triangle after staying successfully beneath an ascending support line from early March, now resistance around 1.2830. That said, the bearish MACD signals keep the Cable sellers hopeful. However, the below 50.0 conditions of the RSI (14) line join a convergence of the 100-DMA and bottom of the stated triangle, around 1.2610, quickly followed by the 1.2600 round figure, to challenge the Pound Sterling’s downside. In a case where the quote remains bearish past 1.2600, the odds of witnessing a slump toward the 200-DMA support of around 1.2350 can’t be ruled out. On the contrary, an upside break of the stated triangle confirms the GBPUSD pair’s bullish breakout and theoretically suggests a run-up towards 1.3700. However, the multi-day-old support-turned-resistance around 1.2830 and the late July swing high around the 1.3000 psychological magnet can test the Pound Sterling bulls. Also acting as an upside hurdle is the yearly high of around 1.3145. Overall, GBPUSD bears approach the short-term key support confluence surrounding the 1.2600 round figure as the UK employment data looms. It’s worth noting, however, that the downbeat prints of the British jobs report may allow the bears to keep the reins and prod the 200-DMA support while the road towards the north appears bumpy in case the scheduled data offers a positive surprise.
by MTradingGlobal
GBPUSD bulls need 1.2870 breakout and strong UK GDPA bullish triangle joins Thursday’s rebound to lure GBPUSD buyers as markets await the first estimates of the UK Q2 GDP. However, fears of recession and the 1.2815-25 resistance confluence restrict Cable prices. That said, a convergence of the 100-SMA and top line of a six-week-old descending triangle together constitute the 1.2800-05 key hurdle for the buyers. Even if the Pound Sterling bulls manage to cross the 1.2805 resistance, the 200-SMA level of near 1.2825 and previous support line stretched from late May, close to 1.2870 will act as the final defenses of the sellers. On the contrary, a softer UK GDP outcome could quickly fetch the GBPUSD price towards the one-week-old horizontal support of around 1.2680. Following that, a broad support zone comprising multiple levels marked since late June, around 1.2620-2590, will be a tough nut to crack for the Cable bears. In a case where the Pound Sterling keeps the reins past 1.2590, the 1.2500 round figure and late May’s swing high near 1.2480 will be buffers during the south run towards May’s low of 1.2308. Overall, GBPUSD teases buyers but they have a tough task on hand to retake control.
by MTradingGlobal
GBPUSD signals further downside on BoE DayA daily closing beneath the 1.2720 support confluence, now resistance, teases the GBPUSD bears as Bank of England (BoE) policymakers brace for another interest rate hike. Apart from a sustained break of the 50-DMA and five-month-old rising trend line, bearish MACD signals and the descending RSI line, not oversold, also keeps the Cable sellers hopeful of revisiting the 100-DMA support of around 1.2570. However, the quote’s further downside past 1.2570 will make the Pound Sterling vulnerable enough to slump toward May’s bottom surrounding the 1.2300 round figure. Though, the early April swing high of near 1.2550 and the 1.2500 threshold can test the downside moves. On the contrary, a dovish hike or a surprise pause in the hawkish cycle could trigger a U-turn and fetch the GBPUSD pair back above the 1.2720 support-turned-resistance confluence comprising the 50-DMA and a multi-day-old ascending trend line. Following that, June’s high of near 1.2850 and the late July peak close to the 1.3000 psychological magnet will be on the Cable buyer’s radar. Should the Pound Sterling remains firmer past 1.3000, the odds of witnessing a fresh yearly high, currently around 1.3145, can’t be ruled out.
by MTradingGlobal
GBPUSD sellers should keep eyes on 1.2760 and UK PMIGBPUSD marked the first weekly loss in three while slipping beneath the 100-SMA and an upward-sloping support trend line stretched from late June. Adding strength to the downside were bearish MACD signals and the RSI line’s reversal from the overbought territory. However, the MACD teases a bull cross as the RSI hovers around the oversold territory, which in turn suggests a corrective bounce in the Cable price. The same highlights a convergence of the 200-SMA and a two-month-old rising trend line, close to 1.2760 as the key level to watch as traders await the UK PMIs for July. In a case where the Pound Sterling drops below the 1.2760 support, the odds of witnessing the quote’s slump towards the late June swing low of around 1.2590 can’t be ruled out. However, the June start swing high of around 1.2550-45 and 78.6% Fibonacci retracement of its May-July upside, near 1.2480, can test the bears before directing them to the May month’s low of around 1.2310. Meanwhile, a convergence of the 100-SMA and the previous support line from late June, close to 1.2870 at the latest, restricts the immediate upside of the GBPUSD pair. Following that, the 1.2960 and the 1.3000 psychological magnet may challenge the buyers before giving them control. In that case, the yearly high marked earlier in the month of around 1.3145 will be in the spotlight. Overall, GBPUSD is likely to witness further downside but it all depends upon the UK data and 1.2760 break.
by MTradingGlobal
UK inflation and 1.3170 need to vouch for GBPUSD bullsGBPUSD extends pullback from a 15-month high, marked the last week, as it awaits the UK’s headline inflation data for June, per the Consumer Price Index (CPI) gauge. The pair previously cheered the US Dollar weakness to refresh the multi-month high before the fears of British recession weighed on the prices. The upside momentum also took clues from a clear break of a downward-sloping resistance line from May 2021 and the 200-week SMA. However, the overbought RSI highlights a horizontal area comprising multiple levels marked since December 2021, near 1.3170, as the immediate key hurdle to cross for the Cable buyers to keep the reins. Following that, the pair’s run-up toward the January 2022 low and 78.6% Fibonacci retracement of its May 2021 to September 2022 downturn, respectively near 1.3360 and 1.3440, can’t be ruled. On the contrary, downbeat UK inflation data and a failure to cross the 1.3170 resistance can trigger the GBPUSD pair’s pullback toward the 1.3000 psychological magnet before highlighting the 200-week SMA support, close to 1.2885 by the press time. In a case where the Pound Sterling falls below the 200-week SMA, the previous monthly low of around 1.2760 and the broad resistance-turned-support line, near 1.2520, will be in the spotlight for the pair sellers. Overall, GBPUSD bulls are near the testing point as the UK inflation data looms.
by MTradingGlobal
GBPUSD renews multi-month high near 1.2900GBPUSD printed the first weekly gain in three after the US Dollar’s fall post-NFP. Following that, the Cable pair crossed the 1.2850 resistance, as well as defy the bearish triangle to rise to the highest level since April 2022. It’s worth noting that the bearish RSI divergence, where the price made a higher high but the indicator marked a lower high, suggests a lack of bullish momentum. However, the sellers need to confirm the bearish triangle break by slipping beneath the 1.2680 support, as well as witness downbeat UK employment data. Following that, the early June swing high of around 1.2550, the 100-DMA level near 1.2420 and May’s low near 1.2310 can act as intermediate halts before directing the quote toward the theoretical target of the bearish triangle, namely the 1.2140 level. Meanwhile, a clear upside break of the 1.2850 hurdle on the daily closing basis becomes necessary for the GBPUSD upside toward the 1.3000 psychological magnet. It should be noted that the UK employment report needs to back the upside break of 1.2850 to keep the Pound Sterling buyers hopeful. Following that, a slew of supports and resistances marked between December 2021 and April 2021 highlight the 1.3150-60 region as the key challenge for the pair buyers. Overall, GBPUSD is likely to return to the bear’s radar after a few weeks of absence. Though, the fundamentals need to back the Cable sellers.
by MTradingGlobal
GBPUSD recovery appears elusive below 1.2850GBPUSD defends the last Thursday’s rebound from the 200-EMA to brace for the first weekly gain in three. The Cable pair’s recovery also takes clues from the upbeat RSI (14) line and the bullish MACD signals, which in turn suggest room for further upside. The same highlights a three-week-old horizontal resistance zone around 1.2760-70 as the short-term key hurdle. Following that, multiple tops marked around 1.2840-50 can act as the last defense of the Pound Sterling bears. In a case where the quote remains firmer past 1.2850, the 61.8% Fibonacci Expansion (FE) of May 25 to June 29 moves, near 1.2930, followed by the 1.3000 psychological magnet, will lure the buyers. On the contrary, a broad support zone comprising levels marked since early May challenges the GBPUSD bear’s entry between 1.2690-70. Should the quote Cable bears manage to conquer the 1.2670 support, the 200-EMA level of around 1.2615 and the 1.2600 round figure will be on their radars. However, a six-week-old ascending support line, close to 1.2580 at the latest, seems a tough nut to crack for the Pound Sterling sellers, a break of which will give back powers to them. Overall, GBPUSD remains firmer but the room towards the north appears limited.
by MTradingGlobal
GBPUSD is still not for the bearsDespite posting the first weekly loss in four, the GBPUSD pair stays beyond the key supports. Not only that but the RSI (14) also retreats from overbought conditions and hence the fears of a pullback are off the table. That said, the MACD signals are bullish, which in turn backs the buyers to renew the upside momentum. That said, the latest peak, also the 61.8% Fibonacci Expansion (FE) of March-May moves, near 1.2850, appears the immediate target for Cable buyers. Following that, the lows marked during March 2022 join the 78.6% FE to highlight the 1.3000 as a strong resistance to watch. In a case where the pair remains firmer past 1.3000, the late 2021 bottom of around 1.3160 will be in the spotlight. Meanwhile, the previous monthly high of near 1.2680 acts as immediate support for the intraday sellers of the GBPUSD pair to watch. Following that, an ascending support line from early March, close to 1.2510, immediately followed by the 1.2500 round figure, will be important hurdles for the bears to conquer to retain control. It’s worth observing that the 100-DMA level of around 1.2350 and the previous monthly low surrounding 1.2300 act as the last battle points for the Cable buyers before relinquishing control.
by MTradingGlobal
GBPUSD stays on bull’s list despite pre-BoE retreatGBPUSD dropped in the last three consecutive days and is on the way to posting the first weekly loss in four as the Cable traders prepare for the Bank of England (BoE) Interest Rate Decision, despite the latest rebound. Even so, the Pound Sterling remains beyond the 50-SMA and a three-week-old rising support line, respectively near 1.2690 and 1.2655 at the latest. Even if the quote breaks these immediate supports, the monthly swing high of near 1.2540 and the 200-SMA surrounding 1.2520 can act as the last defenses. It should be noted that the RSI is below 50.0 and suggest bottom-picking while the strong UK inflation also increases the hawkish hopes from the BoE. In that case, the weekly resistance line of near 1.2770 and the latest multi-month high marked the last week around 1.2850 will be in the spotlight. However, an upward-sloping trend line from mid-April, close to 1.2870 at the latest, will challenge the GBPUSD bulls afterward. In a case where the Cable pair remains firmer past 1.2870, multiple hurdles near 1.2970 and the 1.3000 threshold may test the upside momentum before directing the Pound Sterling prices toward the April 2022 peak of near 1.3150. Overall, GBPUSD is likely to grind higher unless the BoE disappoints markets.
by MTradingGlobal
GBPUSD bulls take a breather ahead of UK employment reportGBPUSD extends the week-start retreat from a one-month high, after posting a two-week upside, as it braces for the UK employment numbers on Tuesday. The In doing so, the Cable pair holds onto the previous day’s pullback from a six-week-long horizontal resistance as RSI retreats from nearly overbought territory. Even so, the MACD indicator flashes bullish signals hence a downside appears limited unless breaking an upward-sloping support line from early March, close to 1.2420 by the press time. Following that, the 100-day Exponential Moving Average (EMA), near 1.2330, will give the last fight to the bulls before giving control to the sellers. Meanwhile, a clear upside break of the aforementioned resistance zone, around 1.2580-85 at the latest, could quickly propel the GBPUSD price towards the yearly high marked in May near 1.2680. In a case where the Cable pair remains firmer past 1.2680, the 1.2700 and the 1.2800 round figures will act as intermediate halts during the likely run-up towards a 61.8% Fibonacci Extension (FE) of the pair’s March-May moves, close to 1.2850. It should be observed that the May 2022 peak near 1.2670 offers an additional upside filter. Overall, GBPUSD is likely to remain bullish unless breaking 1.2330, even if today’s UK employment data and the US inflation numbers disappoint and drags the quote downwards.
by MTradingGlobal
GBPUSD prints bullish consolidation ahead of UK employment dataGBPUSD portrays a bullish megaphone trend widening formation as the Cable traders await the UK employment report on Tuesday. The quote’s latest rebound from the stated pattern’s bottom line allowed it to cross the weekly resistance line. However, a clear upside break of the 100-SMA and 23.6% Fibonacci retracement of the March-May upside, near 1.2525, becomes necessary for the buyer’s conviction. Following that, a fortnight-long horizontal hurdle around 1.2585 and the 1.2600 round figure may act as extra checks for the Cable buyers before directing them to the megaphone’s top line, close to the 1.2700 round figure. It should be noted that the latest multi-month peak of near 1.2680 and likely overbought RSI conditions around then may challenge the bulls ahead of the 1.2700 hurdle. Alternatively, GBPUSD pullback remains elusive unless the quote breaks a convergence of the stated megaphone’s lower line and the previous resistance line from May 10, close to 1.2445 at the latest. Should the quote drop below the stated key support, a quick decline to the 50% Fibonacci retracement level of around 1.2340 can’t be ruled out. Additionally, the Cable pair’s weakness past 1.2340 makes it vulnerable to challenge the previous monthly low of around 1.2270. Overall, GBPUSD is likely to grind higher but a surprise disappointment from the UK jobs report, like the last week’s BoE, can drag the quote lower.
by MTradingGlobal
GBPUSD struggles with key resistance on BoE “Super Thursday”After taking out the 1.2580 key resistance, GBPUSD bulls jostle with the 78.6% Fibonacci retracement of its March-September 2022 downturn, around 1.2685. That said, the RSI (14) grinds near the overbought territory and the MACD signals are sluggish too, which in turn suggests that the buyers are running out of steam on the Bank of England (BoE) inspired “Super Thursday”. Hence, the Cable buyers need a strong boost from the “Old Lady”, as the BoE is often termed informally, to cross the aforementioned Fibonacci resistance. Following that, a run-up towards the April 2022 low of near 1.2980 and the 1.3000 round figure could act as the final checks for the upside momentum targeting the late March 2022 peak of around 1.3300. On the contrary, a daily closing below the resistance-turned-support of around 1.2580, comprising an upward-sloping trend line from August 2022, could push back the intraday buyers. Even so, the 21-day EMA level of near 1.2510 may act as an additional downside filter before pushing the GBPUSD towards the previous monthly bottom surrounding 1.2275. It’s worth noting that the 61.8% and 50.0% Fibonacci retracement levels, close to 1.2170 and 1.1820 in that order, are the final defenses of the Cable pair buyers. Overall, GBPUSD bulls occupy the driver’s seat on the key day but the upside room appears limited.
by MTradingGlobal
GBPUSD bears flex muscles with rising wedge at multi-day topGBPUSD pauses a two-week uptrend inside a rising wedge bearish chart formation. The descending RSI (14) line, however, suggests bottom-picking and hence highlights the need for a strong downside move that can break the wedge’s lower line, as well as the 200-SMA level, respectively near 1.2430 and 1.2385. Following that, the theoretical target of rising wedge confirmation, around 1.2130, gains the market’s attention. Though the 50% Fibonacci retracement level of March-April upside near 1.2190 can act as an intermediate halt whereas the mid-March swing low around the 1.2000 psychological magnet may lure the Cable bears past 1.2130. On the other hand, a surprise positive for the GBPUSD buyers requires successful trading beyond the latest multi-month high marked in the last week around 1.2585 to suggest the quote’s further advances. Even so, the stated wedge’s upper line near 1.2590 and the 1.2600 round figure can act as extra filters towards the north. In a case where the Cable pair remains firmer past 1.2600, the May 2022 peak of around 1.2670 and October 2020 bottom of near 1.2675 may provide the final fight to the bulls before giving them control. Overall, GBPUSD is technically expected to witness a pullback in prices but the looming Fed and the US data can play its magic to change the scenario. Hence, Cable traders should closely observe the outcomes before taking any major positions.
by MTradingGlobal
GBPUSD portrays bullish consolidation above 1.2400GBPUSD buyers appear running out of steam as it wavers inside a three-week-old trading range. Even so, the Cable pair’s successful trading above the 11-month-old descending trend line close to 1.2320 at the latest, as well as beyond an upward-sloping trend line since the last September, keeps the buyers hopeful. Adding strength to the shorter ascending trend line support is the 50-DMA level surrounding 1.2210. Even if the quote breaks the 1.2210 support confluence, the 1.2200 round figure and the 1.2000 psychological magnet can challenge the pair sellers ahead of highlighting the 200-DMA support of around 1.1970. Meanwhile, the latest multi-month high of near 1.2550, marked earlier in April, stays on the GBPUSD buyer’s radar unless dropping below the 1.2320 support line mentioned above. Should the Cable pair remains firmer past 1.2550, the 1.2600 round figure may act as an intermediate halt before directing the quote toward the May 2022 peak of around 1.2665. In a case where the pair crosses the 1.2665 hurdle, the lows marked during early April 2022 near 1.2970-80 can test the bulls before directing them to the March 2022 bottom surrounding the 1.3000 round figure. Overall, the GBPUSD pair remains firmer despite the latest consolidation.
by MTradingGlobal