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GBPUSD

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
Resistance at 1.267: Key Level to Watch After BoE Rate Decision The UK continues to struggle with high inflation, as demonstrated once again this morning when headline inflation exceeded expectations at 8.7%, surpassing the projected 8.4%. Core inflation also outperformed, registering a 7.1% figure compared to the expected 6.8%. This divergence emphasizes the contrast between the UK and its counterparts in the US and Europe. Tomorrow, the Bank of England is set to announce its interest rate decision, and there are expectations of further tightening from the central bank. Given the elevated level of inflation, the bank may have little choice but to maintain a hawkish stance. Last week, the GBPUSD initially tested the support level at the previous resistance of 1.250. However, that brief decline was followed by four consecutive days of significant gains, ultimately reaching a new high for the year. There was a temporary resistance encountered at a critical level of 1.267. Following tomorrow's rate decision, this level could potentially act as a support area, particularly considering the slight pullback observed in recent days and the elevated RSI (Relative Strength Index). On the other side of the trade, we have Federal Reserve Chair Jerome Powell's comments on the central bank's ongoing battle against inflation falling short of the market's more hawkish expectations. During his testimony to lawmakers, Powell acknowledged that inflation remains significantly above the Fed's target and indicated that raising rates could still be a sensible course of action, albeit at a more moderate pace. Traders particularly took note of the term "moderate," which Powell used to qualify the potential rate increases. We still have one more day of testimony from Powell.
by BlackBull_Markets
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
5 Key Factors Shaping US Dollar Trading This Week5 Key Factors Shaping US Dollar Trading This Week The US dollar is in the midst of a week filled with pivotal events. Together, these fundamental drivers hold the key to understanding the potential shifts in the US dollar's performance throughout the week: - US President Joe Biden announced that a bipartisan agreement has been reached to raise the US debt ceiling of $31.4 trillion, aiming to avoid a default. He has now called on Congress to pass the deal asap. Fitch ratings will remove the “negative watch” rating on the United States when the deal passes or looks likely to pass congress. - The debt ceiling agreement has potentially weakened the safe-haven appeal of the US dollar, leading to an increase in risk appetite in global markets. - The Personal Consumption Expenditures price index, the Federal Reserve's favored inflation measure, rose by 4.4% in April compared to the previous year, up from the 4.2% increase observed in March. This development has raised the probability of a 25-basis-point interest rate hike by the Federal Reserve in June. - Due to the Memorial Day weekend in the US, as well as bank holidays in Europe and the UK, Monday will experience reduced market liquidity. Additionally, institutions are preparing for month-end trading on Wednesday, which could introduce more volatility. - The US payrolls report for May will be released on June 2nd. Recent months have consistently shown better-than-expected job figures. It is anticipated that this week's job numbers will indicate an addition of 180,000 jobs, with a slight increase in the unemployment rate to 3.5%. A tighter job market will reinforce the Federal Reserve's hawkish stance, with strong wage data also providing support if the actual figures surpass estimates.
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by BlackBull_Markets
GBPUSD needs to break 1.2260 to convince sellersGBPUSD marked a three-week downtrend while closing below the 50-DMA, as well as an eight-month-old ascending support line. While the bearish MACD signals join the aforementioned breakdowns and favor the sellers, the RSI (14) line is below 50.00, which in turn suggests a lack of conviction at the bull’s front. As a result, an upward-sloping support line from October 2022, close to 1.2260 by the press time, becomes crucial for the sellers. Should the quote remains bearish past 1.2260, the Cable pair can fall to the 200-DMA support of around 1.1980. Following that, the current yearly low of near 1.1800 will offer the last battle to be won for the sellers before taking the throne. On the other hand, the 50-DMA and aforementioned previous support line, respectively around 1.2435 and 1.2500, can challenge the GBPUSD pair’s latest recovery. In a case where the pair remains firmer past 1.2500, April’s high surrounding 1.2525 and the monthly peak of 1.2680 could lure the buyers. It’s worth noting that if the Pound Sterling rises past 1.2680, it will become capable of poking the 1.3000 psychological magnet. Overall, GBPUSD is likely to return to the bear’s radar, after a two-month absence, but it needs to break the key support line to convince sellers.
by MTradingGlobal