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GBPUSD

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
GBPUSD bulls eye 200-SMA ahead of UK CPIGBPUSD’s sustained break of the one-month-old horizontal resistance, near 1.3265-70, keeps buyers hopeful ahead of the UK CPI data for February. That said, a run-up towards the 200-SMA level surrounding 1.3370 becomes imminent due to the breakout and firmer MACD signals even as RSI tests the bulls. Following that, the monthly peak of 1.3436 will challenge the cable’s advances afterward. Alternatively, pullback moves can aim for the 100-SMA retest, around 1.3185 by the press time, a break of which will direct GBPUSD sellers toward an ascending support line from March 15, close to 1.3130 at the latest. Should the quote drop below 1.3130, the 50-SMA level surrounding 1.3100 will question the bears before directing them to the monthly low near the 1.3000 psychological magnet. It’s worth noting that the RSI approaches overbought territory but the UK inflation data is more likely to reinforce the Bank of England’s (BOE) rate-hike concerns, which in turn keep buyers hopeful in absence of any negative surprises.
by MTradingGlobal
GBPUSD stays beyond short-term key hurdle ahead of BOE rate-hikeGBPUSD holds onto recovery moves from 16-month low post FOMC showdown. In doing so, the cable pair remains firmer above a convergence of the 10-DMA and a three-week-long descending trend line, around 1.3120 by the press time. Given the RSI rebound supporting the latest run-up of the pair, it will attract more bids on successfully crossing December 2021 bottom surrounding 1.3160. Following that, February’s bottom near 1.3275 and January’s low of 1.3357 will gain the buyer’s attention before the 100-DMA level around 1.3420 challenges the upside. Alternatively, a downside break of the 1.3120 resistance-turned-support figure will recall the GBPUSD bears. During the quote’s weakness past 1.3120, the 1.3000 psychological magnet will act as an intermediate halt towards the fall targeting a downward sloping trend line from April 2021, close to 1.2950. In a case where the cable bears dominate below 1.2950, 78.6% Fibonacci Expansion (FE) of May 2021 to January 2022 moves, near 1.2885, and November 2021 low of 1.2853 should be in focus for the bears. Overall, a clear upside break of the short-term key hurdle teases the buyers but it would be ideal to wait for the Bank of England (BOE) monetary policy decision before taking any entries.
by MTradingGlobal
GBPUSD bears approach 1.2950 with eyes on BOE, FedGBPUSD refreshed a 16-month low on Friday amid broad US dollar strength, as well as preparations for this week’s key monetary policy meetings of the Bank of England (BOE) and the US Federal Reserve (Fed). With that, the cable pair also broke 2021 bottom and 61.8% Fibonacci Expansion (FE) of June 2021 to January 2022 moves, respectively around 1.3160 and 1.3070. As a result, a downside break of the 1.3000 psychological magnet becomes imminent. However, a descending trend line from April 2021, around 1.2950, may challenge the pair sellers afterward. In a case where the pair prices remain weak past 1.2950, the 78.6% FE level near 1.2885 and November 2020 bottom surrounding 1.2850 will be in focus. On the contrary, the corrective pullback may aim for the 61.8% FE and 2021 bottom, close to 1.3070 and 1.3160. Though, a convergence of the 10-DMA and a three-week-old descending resistance line, around 1.3220-25, will challenge the GBPUSD pair’s further upside. In a case where the quote rises past 1.3225, recovery moves will target January’s low near 1.3360. Overall, GBPUSD broke the key support levels during the last week and hence hints at the further downside. However, oversold RSI and cautious mood ahead of the BOE and Fed decisions may trouble the bears.
Short
by MTradingGlobal
GBPUSD bears approach strong support zone amid oversold RSIGBPUSD marked the second consecutive weekly loss, following a U-turn from the 10-DMA on Thursday. That said, bears keep reins around the lowest levels last seen during late December 2021, backed by a downside break of a five-week-old descending trend line. As a result, the pair sellers eye further declines towards the 1.3170-60 area that comprises multiple lows marked during early December 2021. It should be noted, however, that the oversold RSI conditions may challenge the cable sellers, failing to which could direct the quote towards the 61.8% Fibonacci Expansion (FE) of June 2021 to January 2022 moves, near 1.3070. In a case where the pair remains bearish past 1.3070, the odds of the pair’s extended south-run towards the 1.3000 psychological magnet can’t be ruled out. Meanwhile, corrective pullback needs validation from the 10-DMA, currently around 1.3420. Following that, the mid-February’s low near 1.3485 and the last monthly peak of 1.3645 will gain the market’s attention. It’s worth mentioning that January’s top of 1.3748 will act as the last defense for the GBPUSD pair sellers, following that the bulls will retake control of the pair. Overall, GBPUSD has little room on the downside as RSI hints at a bounce from the key support zone.
by MTradingGlobal