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GBPUSD

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
GBPUSD stays inside monthly triangle ahead of BOE MPR HearingsGBPUSD bears flex muscles inside the one-month-old symmetrical triangle, recently easing from the resistance. Although downbeat RSI and MACD signals keep sellers hopeful of breaking the stated triangle’s support line, around 1.3550 at the latest, a convergence of the 100-DMA and the 50-DMA highlights the 1.3500 threshold as strong support. Even if the cable pair drop below the 1.3500 mark, the following south-run needs validation from an upward sloping support line from late December, near 1.3780 by the press time, a break of which will give controls to bears. On the contrary, hawkish BOE Monetary Policy Report (MPR) Hearings will again challenge the triangle’s resistance line, close to 1.3635. Following that, the 200-DMA and a descending resistance line from October 2021, respectively around 1.3680 and 1.3700, could test the bulls. During the quote’s run-up past-1.3700, January’s peak of 1.3748 may act as the last defense for the pair sellers ahead of unleashing the bulls. Overall, GBPUSD grinds inside the monthly triangle ahead of a likely hawkish event.
by MTradingGlobal
GBPUSD bulls eye 1.3700 on crossing monthly resistanceGBPUSD stays beyond a downward sloping resistance line from January 20, now support around 1.3590. Despite the recent pullback, the trend line breakout joins upbeat RSI and MACD signals to direct buyers towards the late January tops surrounding 1.3660. Following that, January 14 swing low near 1.3700 will gain the market’s attention as the RSI might have turned overbought by then. If not then the last month’s peak of 1.3748 should return to the charts. Alternatively, pullback moves remain elusive beyond the resistance-turned-support line, close to 1.3590. Though, a convergence of the 50-SMA, 200-SMA and 50% Fibonacci retracement (Fibo.) of January 2022 downside, around 1.3550, becomes a tough nut to crack for the GBPUSD bears. Should the pair drop below 1.3550, it becomes vulnerable to drop towards the 38.2% and 23.6% Fibo. levels, respectively around 1.3500 and 1.3450. To sum up, a clear upside break of the previous key resistance line joins successful trading beyond the 1.35550 support confluence to favor GBPUSD buyers.
Long
by MTradingGlobal
GBPUSD ANALYSIS ON H4 CHART.Overall, GBP/USD is ranging across. Recently, GBP/USD bounced up from the key level of 1.35. The UK employment data released yesterday indicated continued decline in the number of people claiming for unemployment benefits in February. Meanwhile, average earnings rose while unemployment rate remained unchanged. Average Earnings Index 3m/y (Actual: 4.3%, Forecast: 3.8%, Previous: 4.2%) Claimant Count Change (Actual: -31.9K, Forecast: -36.2K, Previous: -43.3K) Unemployment Rate (Actual: 4.1%Forecast: 4.1%, Previous: 4.1%) The UK CPI y/y data (Forecast: 5.4%, Previous: 5.4%) will be released later at 1500 (GMT+8). GBP/USD’s next support zone is at 1.33800 and the next resistance zone is at 1.36000. Look for short-term buying opportunities of GBP/USD.
Long
by charliedavies770