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GBPUSD

GBPUSD bears attack 1.2480 support confluenceGBPUSD not only snapped a two-week uptrend by the end of Friday but also jostles with short-term key support around 1.2480, comprising 100-SMA and a fortnight-long support line. Descending RSI and sluggish MACD also suggest that the bulls ran out of steam, suggesting further downside ahead. Hence, bears appear hopeful of revisiting the 23.6% Fibonacci retracement of the April-May downside, around 1.2385, with the immediate battle to be won against 1.2480. Following that, 1.2330 and 1.2260 may entertain sellers before directing them to May’s low of 1.2155. Any corrective pullback, however, needs validation from a downward sloping trend line from mid-April, surrounding 1.2600 by the press time. Also acting as an upward filter is May’s peak of 1.2666, as well as the 61.8% Fibonacci retracement level of 1.2770. In a case where GBPUSD buyers remain dominant past 1.2770, an upward trajectory towards April 19 swing low close to 1.2980 can’t be ruled out. Overall, GBPUSD signals further downside but sustained trading below 1.2480 becomes necessary.
by MTradingGlobal
GBPUSD rebound remains doubtful unless crossing 1.2780GBPUSD refreshed it's monthly high the previous day but the bulls don’t have smooth sailing due to the weekly closing below the 1.2630-40 horizontal hurdle. That said, RSI and MACD have been supportive of the recovery moves and hint at the further upside. However, a convergence of the descending trend line from February and the 50-DMA, around 1.2775-80, appears a tough nut to crack for the buyers. It’s worth noting, though, that a clear run-up beyond 1.2780 could propel the prices towards a 50% Fibonacci retracement of February-May downside, near 1.2950. Meanwhile, pullback moves may initially dribble around the 23.6% Fibonacci retracement level of 1.2530 before the GBPUSD bears approach a one-month-old horizontal support area surrounding 1.2400. Should the quote fail to bounce off 1.2400, the 1.2260-55 region can act as the last defense for the sellers. During the cable’s weakness past 1.2250, the recent multi-month low around mid-1.2100s and the May 2020 bottom of 1.2075 will gain the market’s attention. Overall, GBPUSD approaches the short-term key hurdles which hold the keys to a trend change.
by MTradingGlobal
GBPUSD bulls have more upside on the platterGBPUSD braces for further upside until staying beyond the 100-SMA and a three-week-old horizontal resistance, now support 1.2400. That said, the 38.2% Fibonacci retracement (Fibo.) of the pair’s downside from late April to the recent lows, around 1.2515, appears short-term target for the bulls. Following that, the 1.2600 threshold and the monthly peak surrounding 1.2640 should gain the market’s attention. In a case where the cable buyers dominate past 1.2640, the 200-SMA level near 1.2700 appears a tough nut to crack. Meanwhile, further selling should wait for a clear downside break of 1.2400 to aim for the early May swing low near 1.2260. In a case where GBPUSD prices remain weak past 1.2260, the recent multi-month low close to 1.2155 will act as the last defense for the bulls. It’s worth noting that sustained trading below 1.2155 could make the quote vulnerable to a slump towards the 1.2000 psychological magnet. To sum up, GBPUSD has had enough of the south-run and hence a short-term recovery can’t be ruled out.
by MTradingGlobal
Falling wedge at two-year low teases GBPUSD buyers, UK GDP eyedGBPUSD remains guarded, despite all the difficulties, ahead of the preliminary readings of UK Q1 2022 GDP. In doing so, the cable pair portrays a falling wedge bullish chart pattern at the lowest levels since June 2020. Given the likelihood of firmer UK growth numbers and anticipated positive news from Brexit, not to forget the wedge near multi-month low, the cable has brighter odds of consolidating recent losses. However, a clear upside break of 1.2415 becomes necessary to the ball rolling in favor of buyers. Following that, the 200-SMA level surrounding 1.2850 may probe the theoretical upswing towards 1.3200. It’s worth noting that the 1.3000 psychological magnet and April’s high near 1.3165 can act as additional upside filters to watch. Alternatively, a disappointment may drag the quote initially towards the latest bottom near 1.2260, a break of which could propel GBPUSD prices towards the stated wedge’s support line, close to 1.2200. In a case where the cable pair remains on the back foot past-1.2200, May 2020 low around 1.2075 might test the bears on the way to the 1.2000 round figure. Overall, GBPUSD bears seem running out of steam ahead of the key UK data and the falling wedge near the two-year top appears cherry on the top. Though, it all depends upon the British GDP, which in turn requires caution on the part of buyers.
by MTradingGlobal
GBPUSD bulls need 1.2830 breakout for conviction, BOE in focusGBPUSD stays near the two-year low, despite the post-Fed rebound, as cable traders brace for the Bank of England’s (BOE) 0.25% rate hike. Given the latest hawkish moves from the RBA and the Fed, the “Old Lady’s” heavier-than-expected measures to tame inflation won’t be a surprise. In that case, the pair will witness the much-awaited rebound from the 61.8% Fibonacci retracement (Fibo.) of March 2020 to May 2021 upside towards September 2020 bottom surrounding 1.2675. However, a convergence of the previous support line from March 2021 and 50% Fibo, around 1.2830, appears a tough nut to crack for the pair buyers, a break of which could escalate the recovery moves towards the 200-week SMA surrounding 1.3100. Alternatively, a disappointment from the BOE will need a clear break of the aforementioned key Fibo support level, near 1.2500, to direct bears towards the June 2020 bottom of 1.2250. In a case where GBPUSD prices remain weak past 1.2250, the May 2020 swing low around 1.2075 will act as the last defense for the buyers as a break of which won’t hesitate to call the 2020’s yearly trough of 1.1409. To sum up, GBPUSD remains in the hands of bears ahead of the BOE’s monetary policy decision.
Short
by MTradingGlobal
GBPUSD signals further losses, UK data, BOE’s Bailey eyedGBPUSD extends pullback from 1.3090 ahead of the key UK data, as well as a speech from the BOE Governor Andrew Bailey, during early Friday. The downside bias also gains support from the sluggish RSI and MACD, which in turn suggests the pair’s further weakness towards the support line of a six-week-old triangle, near 1.2990 at the latest. Following that, the monthly low and 61.8% Fibonacci Expansion (FE) of the March-April moves, respectively around 1.2970 and 1.2945, will lure the pair sellers. Alternatively, recovery moves will aim for the stated triangle’s upper line, surrounding 1.3090. Also acting as the short-term key resistance is the 200-SMA level close to the 1.3100 threshold. Should the quote rises past 1.3100, the mid-month high of 1.3146 and the monthly peak of 1.3166 may test the GBPUSD buyers. Following that, the 61.8% Fibonacci retracement level close to 1.3170 will act as an additional challenge for the bulls before retaking the controls.
Short
by MTradingGlobal
GBPUSD seesaws inside weekly triangle, bears in commandGBPUSD struggles to defend 1.3100 inside a one-week-old symmetrical triangle. Even so, an impending bear cross and failure to cross the horizontal resistance since late February during the latest upswing keep sellers hopeful. That being said, a clear downside break of the 1.3100 threshold, also comprising the stated triangle’s support line, becomes necessary for the bears to step in. Following that, a south-run towards the previous month’s bottom surrounding 1.3000 can’t be ruled out. However, the 61.8% FE level of February-March moves, near 1.2900, may offer breathing space to sellers while assuming oversold RSI conditions at that point. On the contrary, a convergence of the 50-SMA and 100-SMA guards the immediate upside around 1.3130-35, ahead of the triangle’s upper line close to 1.3150. In a case where GBPUSD rises past 1.3150 buyers can aim for 1.3220, a break of which will test the 1.3270-75 horizontal resistance area, also known as the last defense for bears. Overall, GBPUSD is likely to witness further downside but a clear break of the 1.3100 support is required to please bears.
Short
by MTradingGlobal