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GBPUSD

GBPUSD: Sellers approach multi-month-old support before US dataGBPUSD is slipping from last week’s bounce off a six-month support line. Traders are watching for Tuesday's US Consumer Confidence report, while the strong US Dollar and cautious mood ahead of the US Q3 GDP figures, inflation data, and Nonfarm Payrolls (NFP) are putting pressure on the Pound Sterling. Bears lose momentum While GBPUSD buyers aren’t gaining traction, sellers will struggle to take control. There are multiple support levels, and indicators like the RSI (14) and a weakening bearish MACD signal may hinder the bear’s progress. Key technical levels to watch Watch for the upward support line from late April around 1.2935, followed by the 200-SMA near 1.2800, as near-term key levels to watch for the GBPUSD sellers. If the bears push below 1.2800, look for support at the August and June lows around 1.2665 and 1.2610. GBPUSD needs to break the ascending trend line from early March near 1.3080 for a recovery. Additional resistance levels include the psychological barrier at 1.3000 and the 50-SMA at 1.3140. Lastly, a horizontal resistance zone near 1.3240 serves as a crucial barrier for buyers. Further downside appears less convincing With the bearish trend losing momentum, expectations for fewer rate cuts from the US Federal Reserve could change if upcoming data doesn't support US Dollar strength. This uncertainty calls for caution among GBPUSD sellers.
by MTradingGlobal
GBP Analysis for Potential Buy or Sell Entry Overview: We’re focusing on a POI (Point of Interest) zone where we expect potential price reactions. This POI zone represents a key support or resistance area, and it will determine whether we enter a buy or sell position depending on how the market price reacts to it. Plan: 1. If the market price finds support at the POI Zone: Look for confirmation signals (such as bullish candlesticks, break of recent highs, or volume increases). Enter a Buy position targeting higher levels, aiming for a positive risk-reward ratio. Identify potential target levels based on previous resistance or Fibonacci extensions. 2. If the POI Zone fails as support: Wait for the price to retrace back towards the POI zone, testing it as resistance. Enter a Sell position targeting lower levels, especially if bearish patterns or momentum indicators confirm the move. --- Key Reminder: Trading always involves probabilities, not certainties. No strategy is foolproof, and risk management is essential. Make sure to place stop-losses in appropriate positions to protect your capital, and remember that disciplined execution is key.
Long
by dkrajkumar90
GBPUSD: Bears face limited downside ahead of BoE's Bailey speechOn Tuesday morning, GBPUSD is testing the 100-bar Exponential Moving Average (EMA) support, pulling back from last week's bounce. Traders are on alert as they await comments from Bank of England Governor Andrew Bailey. Sellers keep the reins but have limited downside room available While GBPUSD’s failure to stay above the 100-EMA and bearish MACD signals encourage sellers, a declining RSI (14) and a six-month-old ascending support line suggest only limited room for further decline. Key technical levels to watch The GBPUSD pair is currently supported by the 100-EMA around 1.2985 and an upward trend line near 1.2950, limiting immediate downside potential. If these levels break, the 50% Fibonacci retracement from April to September at 1.2865 could attract sellers, followed by the 61.8% retracement and August low at 1.2730 and 1.2665. On the upside, the 50-EMA and the 23.6% Fibonacci level around 1.3085 and 1.3165 will be crucial barriers. However, the key focus will be the horizontal resistance zone near 1.3230-40. If GBPUSD can hold above 1.3040, the next target could be around 1.3315-20, with the previous monthly high at 1.3435 acting as a potential stopping point. Bears approach key support zone GBPUSD is nearing important support levels as traders wait for comments from BoE’s Bailey, along with this week’s UK and US PMIs and Durable Goods Orders. With a more hawkish stance from the Fed compared to the BoE and concerns about the UK’s economic strength relative to the US, the pair is likely to maintain its downward trend, even if the downside potential seems limited.
by MTradingGlobal
GBPUSD: Testing key support as Cable traders await major UK dataGBPUSD pokes a three-month support region as pressure builds ahead of the UK employment and inflation data, as well as the US Retail Sales, set to release this week. Pound Sterling bears flex muscles Despite several technical levels testing the GBPUSD sellers, a potential bear cross between the 100-bar and 200-bar Exponential Moving Average (EMA) keeps the bears optimistic. The weakening bullish momentum in the MACD and a steady RSI support the downside outlook. Additionally, a sustained break below an ascending support line from early August, now acting as resistance, favors the bears. Key technical levels to watch The GBPUSD pair is currently held up by a three-month support zone around 1.3040-30, just above the psychological level of 1.3000. If it drops below 1.3000, a quick decline to the late July swing high around 1.2940 and then to early August peaks near 1.2870-60 could follow. In a case where the Pound Sterling remains bearish past 1.2860, it becomes vulnerable to slump toward August’s bottom of near 1.2665. On the flip side, GBPUSD recovery remains elusive below the 100 and 200 EMAs, currently near 1.3145 and 1.3150. A seven-week horizontal resistance zone near 1.3230-40 and a previous support line around 1.3330 also pose challenges for Cable buyers. If bulls can push past 1.3330, a rally toward the last monthly high near 1.3435 is possible. Sellers stay in control While robust technical support is challenging GBP/USD sellers, a dovish outlook for the Bank of England and anticipated weak UK data, alongside rising hawkish sentiment from the Fed, may keep bears in control. Upcoming data could create some volatility, but the bearish sentiment remains strong.
by MTradingGlobal
GU: Buy Setup Near Strong Demand Zone Amid USD WeaknessWith Hurricane Milton approaching the U.S., there’s a high probability of the U.S. Dollar (DXY) weakening due to economic disruptions and market uncertainty. This sets the stage for potential bullish movements in GBP/USD, particularly as the pair approaches a key support/demand zone on the Daily chart around 1.3030 - 1.31. Key Technical Insights: Daily Support/Demand Zone: On the Daily chart, GBP/USD is testing a critical support zone, which has historically provided strong buying interest. The presence of this demand zone suggests that price may bounce back if supported by technical confirmation. Bullish Divergence on H4: On the H4 timeframe, a clear bullish divergence is forming with the Awesome Oscillator (AO). While the price is making lower lows, the AO is creating higher lows, indicating that selling pressure is weakening and a reversal could be near. Trade Plan: Entry : Look for confirmation with a bullish reversal pattern such as a bullish engulfing candle or a pin bar in the support zone before entering. Stop Loss: Set your stop loss below the support at 1.30 to protect against false breakouts. Target: Initial target around 1.33, with potential to extend higher if the bullish momentum continues. This setup aligns with both technical and fundamental drivers, making it a strong candidate for a buy if the market conditions confirm the reversal. FX:GBPUSD OANDA:GBPUSD FOREXCOM:GBPUSD
Long
by Trading_Zone_3773
GBPUSD: Focus on 50-SMA, key horizontal support and Fed MinutesGBPUSD struggles to hold onto early gains after bouncing off a three-month support level. As bearish momentum builds, traders closely watch for insights from the upcoming Federal Open Market Committee (FOMC) meeting minutes. Multiple catalysts favoring Cable sellers The Pound Sterling is finding it hard to sustain a rebound from the 12-week-old support zone. Bearish MACD signals and downbeat RSI (14) add to the negative sentiment. Additionally, last week's confirmation of a bearish rising wedge pattern enhances the resolve of GBPUSD sellers, pointing to continued downward pressure. Key technical levels to watch While sellers currently dominate the GBPUSD market, the 50-day SMA around 1.3085 poses an immediate challenge to further declines, with crucial support around 1.3060-1.3040 just below. If these levels break, the 100-day and 200-day SMAs at 1.2935 and 1.2780 could test sellers before directing them to the bearish pattern’s theoretical target of 1.2450. A corrective bounce for GBPUSD seems unlikely to gain credence unless it breaks above the wedge's lower line near 1.3280. That said, the immediate resistance levels are at 1.3100 and 1.3200. If the price holds above 1.3280, bulls may aim for a yearly high of approximately 1.3435 and the wedge's upper line around 1.3510. Bears to dominate Considering the bearish technical signals and the potential for the US Dollar to consolidate its previous monthly losses—supported by positive economic data and a hawkish Federal Reserve bias—the GBPUSD pair is likely to decline further. This outlook holds unless today’s Fed Minutes and Thursday’s Consumer Price Index (CPI) data underperform, which could dampen the US Dollar's strength.
by MTradingGlobal
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GBPUSD: “Rising Wedge” signals selling pressure on PoundGBPUSD experienced its biggest decline in a week the previous day as the US Dollar strengthened ahead of the September jobs data. The Pound Sterling tested a bearish rising wedge pattern but managed to bounce back from the lower line of this formation. Despite this slight recovery, traders are cautious and watching closely as they await the US ADP Employment Change report on Wednesday, followed by the important Nonfarm Payrolls (NFP) data on Friday. Sellers flex muscles… Besides the US Dollar’s rebound before the key US data, bearish MACD signals also keep the GBPUSD sellers hopeful. However, the nearly oversold conditions of RSI (14), the quote’s sustained trading beyond the 200-SMA, and downbeat expectations from the US statistics suggest a long and bumpy road for the bears. Technical levels to watch… If GBP/USD falls below 1.3240, it will confirm a bearish rising wedge pattern, making this level critical for traders. Another important support level is the 200-SMA at 1.3180. Should the pair break below this, it may target the horizontal support zone around 1.3030, with 1.3000 serving as a psychological level. Further declines could lead to August's low near 1.2665 and possibly down to the wedge's target of 1.2370. On the upside, the GBPUSD pair faces resistance at 1.3310 and 1.3360, with the latest peak around 1.3435. If the pair breaks above 1.3435, it will encounter the top line of the rising wedge near 1.3465. Successfully moving past 1.3465 could set the stage for a rally toward the February 2022 high of about 1.3645. Expect a price pullback, but not a significant drop Overall, the GBPUSD buyers appear to be losing momentum, with sellers positioned near the bottom of the wedge and the 200-SMA. However, potential weakness in US data and several support levels make it challenging for sellers to gain full control.
by MTradingGlobal
GBP/USD: Break $1.34277 or Pull Back to $1.33605?The GBP/USD chart on September 30th paints a dramatic scenario as the price hovers around $1.34090, preparing to confront the strong resistance at $1.34277. This is the "wall" that if the buyers can overcome, a new journey toward higher peaks will begin. However, the battle won’t be easy. If the price is rejected at resistance, a correction toward the support zone at $1.33605 could happen, giving the sellers the advantage. With support from the EMA 34 at $1.33816 and EMA 89 at $1.33378, the price might find stability. What heightens the market's tension now is the influx of economic news from the U.S. Traders are anxiously awaiting key factors that will determine whether GBP/USD will see a spectacular breakout or a retracement. All will be revealed in the coming sessions!
Long
by Romio_pro
GBPUSD: Overbought RSI, key resistance test buyersGBPUSD bulls are pausing at their highest level since February 2020, marking six days of gains despite a slow market atmosphere. That said, the Pound Sterling is facing a liquidity squeeze as we approach key data and events this week, which could impact its upward momentum at these multi-month highs. Pullback appears imminent but bulls can keep the reins Apart from the market’s anxiety ahead of this week’s key catalysts, the overbought RSI (14) line and a 10-week-old ascending resistance line, close to 1.3430 at the latest, suggest consolidation in the GBPUSD prices. Important technical levels A pullback in GBPUSD seems likely, with key short-term support levels at the 61.8% and 50.0% Fibonacci extensions of the quote’s August-September moves, respectively near 1.3375 and 1.3300. However, the previous monthly high near 1.3265 and the 21-SMA at 1.3190 are important, as they align with the bottom of a bearish wedge pattern near 1.3140, which could act as a final defense for buyers. On the flip side, for buyers to regain control, they need to break through the 1.3440 resistance. If they succeed, GBPUSD could target the February 2022 peak of around 1.3645 and the 2022 high of 1.3748. A sustained move above 1.3750 could even lead to a challenge of the psychological level at 1.4000. All eyes on US data/events Technical indicators for GBPUSD suggest a pullback may be on the horizon, even as recent U.S. factors favor ongoing Federal Reserve rate cuts throughout 2024. Therefore, key insights from Fed Chairman Jerome Powell’s speech on Thursday and the U.S. Core PCE Price Index— the Fed’s preferred measure of inflation—on Friday will be vital for determining the market's direction.
by MTradingGlobal
GBP/USD Breakout Anticipation Near Resistance 1.33553GBP/USD is on the verge of a dramatic breakout! Currently trading around 1.32760, it's hovering just below the critical resistance level of 1.33553. If GBP/USD fails to break through this resistance, it may retreat to the support level of 1.32396 – a moment where the market holds its breath, awaiting decisions from the Fed and the Bank of England. Alternatively, the next target could be the high of 1.33893 – where investors are eagerly hoping for a leap forward. The game is heating up by the minute, and any news from these meetings could be the 'trigger' for significant volatility! Investors should stay vigilant as the market is about to enter a high-stakes scenario full of surprises!
Long
by Romio_pro
GBPUSD: Post-FOMC optimism stays intact despite pre-BoE retreatGBPUSD consolidates Fed-induced gains as traders await monetary policy announcements from the Bank of England (BoE). That said, the Cable pair reached a fresh 30-month high after the US Federal Reserve’s (Fed) 0.50% rate cut that drowned the US Dollar across the board. Buyers stay optimist Although the Pound Sterling struggles to hold at a 2.5-month high, not to forget its failure to provide sustained breakout of a month-old horizontal resistance, the quote defends the mid-month breakout of a descending resistance line from late August, now support. Also keeping buyers hopeful is the pair’s recent rebound from the 100-SMA and steady RSI conditions. It’s worth noting, however, that the bearish MACD signals and a likely status-quo of the BoE could join the key upside hurdle to challenge the bulls. Technical levels to watch For GBPUSD buyers, the immediate resistance to watch is a month-old range between 1.3230 and 1.3240 if the BoE sounds hawkish. After that, the focus will shift to the 1.3300 level. If the Cable price stays above 1.3300, the 50% and 61.8% Fibonacci Extension (FE) levels around 1.3305 and 1.3375 could attract buyers. On the flip side, GBPUSD sellers need a clear break below the 1.3150-45 support zone, which includes the 100-SMA and a month-old previous resistance line, to weaken buyer’s confidence. If they succeed, the next tests will be the 1.3100 level and the 200-SMA at 1.3025, as well as the key psychological level of 1.3000. Upward bias seems favorable Whether due to an expected hawkish pause from the BoE or the market's response to the Fed's dovish surprise, along with GBPUSD trading above the 1.3150-45 resistance-turned-support, the pair is likely to stay bullish unless the UK central bank surprises traders.
by MTradingGlobal