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Poundsterling

GBPUSD bulls jostle with multi-month-old resistance lineGBPUSD rose to the highest level in a month the previous day but failed to offer a daily closing beyond a downward-sloping resistance line from July 2023. In addition to the inability to cross the key trend line resistance, softer prints of the UK PMIs and sluggish MACD signals also challenged the Cable pair buyers. However, the quote’s capacity to remain firmer past the 200-bar Exponential Moving Average (EMA) and the firmer RSI (14) line push back the bears. Hence, the Pound Sterling bulls are likely to keep the reins and can overcome the immediate resistance line, close to 1.2700 by the press time, but its further advances need validation from the late 2023 swing high of around 1.2830 and the MACD signals to confirm the bullish trend. In that case, tops marked on July 23 and 13, respectively around 1.3000 and 1.3140, will be in the spotlight. Meanwhile, the GBPUSD pair’s pullback moves remain elusive beyond a one-month-old rising support line, close to 1.2600. Following that, the Cable bears will need confirmation from the 200-EMA level of 1.2530 on a daily closing basis to retake control. Should that happen, the quote’s gradual downward trajectory toward highs marked in November and October of 2023, around 1.2430 and 1.2335 in that order, can’t be ruled out. Overall, the GBPUSD pair remains on the bull’s radar despite the latest struggle with the key resistance line. Apart from the technical details, the cautious mood ahead of the US ADP Employment Change and Fed Chair Jerome Powell’s Testimony also appear crucial to determine near-term moves of the Pound Sterling.
by MTradingGlobal
GBPUSD bears keep 1.2500 on radar, UK inflation eyedGBPUSD licks its wounds around 1.2600 early Wednesday as traders await the UK inflation clues for January. That said, the Cable pair marked a stellar move the previous day, initially rising to a seven-day high before posting the biggest daily loss in a week while reversing from the 50-bar Exponential Moving Average (EMA). It should be noted that Tuesday’s reversal from 50-EMA also defends the Pound Sterling’s early month break of a 12-week-old rising support line, now resistance around 1.2685. Additionally, the bearish MACD signals and an absence of the oversold RSI (14) also keep the pair sellers hopeful. However, a convergence of the 200-EMA and multiple levels marked since early December 2023, close to 1.2520-2500, appears a tough nut to crack for the pair bears. In a case where the prices drop below 1.2500, the mid-November 2023 swing low of around 1.2375 will be in the spotlight. Alternatively, the strong UK inflation numbers could allow the GBPUSD pair to have another battle with the 50-EMA and the aforementioned support-turned-resistance, respectively near 1.2635 and 1.2675. If at all the Cable bulls manage to keep the reins past 1.2675, a downward-sloping resistance line from January 12, close to 1.2770 by the press time, will be the final defense of the pair sellers. Following that, the late 2023 peak of near 1.2830 and the 1.3000 psychological magnet will lure the Pound Sterling buyers. Overall, the GBPUSD pair remains bearish unless staying below 1.2675, especially when the US inflation data appears more lucrative to the Fed hawks. Even so, the Bank of England (BoE) officials have been optimistic of late and hence today’s UK inflation clues will be closely observed for clear directions.
by MTradingGlobal
GBPUSD struggles with support-turned-resistanceGBPUSD snapped a two-day winning streak on Thursday while retreating from a previous support line stretched from November 22. It’s worth noting, however, that late Thursday’s corrective bounce in the Cable pair renewed bullish bias about the quote, especially amid the upbeat RSI conditions. With this, the support-turned-resistance line surrounding 1.2650 challenges the Pound Sterling buyers. Apart from that, a convergence of the 100 and 200-bar Exponential Moving Average (EMA), around 1.2660 by the press time, also acts as a tough nut to crack for the bulls. In a case where the prices remain firmer past 1.2660, a quick run-up toward a one-month-old resistance line, close to 1.2770 at the latest, can’t be ruled out. Meanwhile, the GBPUSD pair sellers need validation from the previous day’s low of near 1.2570 to take fresh positions. Even so, a two-month-old horizontal support zone surrounding 1.2520–2500 will challenge the quote’s downside momentum. Following that, the mid-November 2023 swing low of around 1.2370 will act as the final defense of the Cable buyers before giving control to the bears. Overall, the GBPUSD pair buyers flex muscles ahead of the key week comprising a slew of UK and US data.
by MTradingGlobal
GBPUSD bulls struggle to keep reins as UK inflation loomGBPUSD retreats toward 1.2700 ahead of the UK inflation release on Wednesday, after snapping a two-day losing streak the previous day. Even so, a two-month-old rising trend channel joins the upbeat RSI (14) line, not overbought, to keep the Cable buyers hopeful unless the quote stays beyond 1.2620. Even if the pair defies the bullish chart formation by sliding beneath the 1.2620 support, the 200-SMA surrounding 1.2510 will act as the last defense of the bull before directing prices toward the early October swing high of around 1.2335. Meanwhile, an upward sloping resistance line stretched from early September, close to 1.2785 by the press time, guards immediate run-up of the GBPUSD pair. Following that, the 23.6% Fibonacci ratio of the pair’s March-July upside and the aforementioned channel’s upper line, respectively near 1.2830 and 1.2920, will test the Pound Sterling buyers. In a case where the quote stays firmer past 1.2920, the late July peak of around 1.3000 and the yearly peak of 1.3142 will lure the bulls. Overall, the GBPUSD bulls are in the driver’s seat as markets await the UK inflation and the US CB Consumer Confidence.
by MTradingGlobal
GBPUSD portrays bullish consolidation above 1.2600GBPUSD struggles to extend the previous three-week uptrend as it seesaws around a three-week high after retreating from an ascending resistance line stretched from late October. The pullback also takes clues from the RSI (14) line’s retreat from the overbought territory, as well as an impending bear cross on the MACD. With this, the Cable pair appears vulnerable to extending the latest weakness towards the 1.2480-70 support confluence comprising 100-SMA, 200-SMA and 50% Fibonacci retracement of the March-July upside. However, the 1.2600 and 1.2500 round figures are likely to test the bears before allowing them to confront with strong support. In a case where the quote remains weak past 1.2470, the odds of witnessing a quick fall toward October’s peak of 1.2337 can’t be ruled out. Meanwhile, GBPUSD recovery needs validation from the recent top surrounding 1.2735. Even so, the aforementioned resistance line, close to 1.2800 at the latest, and the 23.6% Fibonacci ratio of nearly 1.2830 will challenge the Pound Sterling’s upside targeting the 1.3000 psychological magnet. Following that, the yearly high of 1.3142 will be in the spotlight. Above all, fears of the UK’s economic slowdown unearth as traders shift attention from dovish Fed concerns and brace for this week’s US jobs report, which in turn tests the GBPUSD pair buyers.
by MTradingGlobal
GBPUSD pullback appears overdue, 1.2560 eyedGBPUSD seesaws at the highest level in 12 weeks, printing mild intraday gains during a four-day uptrend, amid early Tuesday. In doing so, the Cable buyers jostle with a one-month-old bullish channel’s top line amid an overbought RSI (14) line. As a result, the quote’s pullback appears imminent. However, an ascending trend line from early November, close to 1.2560 at the latest, puts a floor under the Pound Sterling. In a case where the pair breaks the 1.2560 support, it becomes capable of challenging the short-term bullish channel formation, as well as the 200-EMA, by poking the 1.2370-65 support confluence. It’s worth noting, however, that the bear’s dominance past 1.2365 won’t hesitate to challenge the monthly low of around 1.2100. Alternatively, GBPUSD bulls need to cross the aforementioned channel’s top line, close to 1.2645-50 at the latest, to defy the odds of witnessing a pullback. In that case, the early August swing high of around 1.2820 and the 1.3000 psychological magnet will lure the Cable buyers. However, the run-up will need validation from the US Q3 GDP, PCE Core Price Index and Fed Chair Powell’s speech, not to forget the concerns surrounding the UK’s economic growth and BoE’s hawkish move. Hence, the odds of witnessing the GBPUSD pair’s further upside appear thin but the pullback needs to break 1.2560 to convince sellers.
by MTradingGlobal
GBPUSD fades bounce off 21-SMA, UK inflation, US inflation eyedGBPUSD snaps a two-day winning streak with mild losses around 1.2270 as traders await the UK employment and the US inflation data on early Tuesday. In doing so, the Cable pair fades bounce off the 21-day SMA. However, the absence of an overbought RSI (14) line, bullish MACD signals and the quote’s defense of the early-month resistance breakout keeps the buyers hopeful. With this, the tops marked in October around 1.2290 and the monthly high of near 1.2340 could lure the Pound Sterling bulls during a fresh run-up. However, the 200-day SMA level surrounding 1.2440 appears a tough nut to crack for the bulls, a break of which won’t hesitate to direct the prices toward the August month’s swing low of around 1.2550. It’s worth noting, however, that the fundamentals are against the bullish technical signals considering the UK’s economic weakness vis-à-vis the US. Even so, the 21-day SMA and the previous resistance line, respectively near 1.2200 and 2120, restrict the short-term downside of the GBPUSD pair. In a case where the Pound Sterling bears dominate past 1.2120, a five-week-old horizontal support near 1.2070, the previous monthly low of near 1.2035 and the 1.2000 psychological magnet could test the sellers before giving them full control. Overall, the GBPUSD pair is likely to edge higher unless the scheduled data posts too disappointing numbers.
by MTradingGlobal
GBPUSD closing in key support ahead of UK employment dataGBPUSD remains on the back foot as the Cable bears attack the bottom line of a six-week-old bullish triangle after staying successfully beneath an ascending support line from early March, now resistance around 1.2830. That said, the bearish MACD signals keep the Cable sellers hopeful. However, the below 50.0 conditions of the RSI (14) line join a convergence of the 100-DMA and bottom of the stated triangle, around 1.2610, quickly followed by the 1.2600 round figure, to challenge the Pound Sterling’s downside. In a case where the quote remains bearish past 1.2600, the odds of witnessing a slump toward the 200-DMA support of around 1.2350 can’t be ruled out. On the contrary, an upside break of the stated triangle confirms the GBPUSD pair’s bullish breakout and theoretically suggests a run-up towards 1.3700. However, the multi-day-old support-turned-resistance around 1.2830 and the late July swing high around the 1.3000 psychological magnet can test the Pound Sterling bulls. Also acting as an upside hurdle is the yearly high of around 1.3145. Overall, GBPUSD bears approach the short-term key support confluence surrounding the 1.2600 round figure as the UK employment data looms. It’s worth noting, however, that the downbeat prints of the British jobs report may allow the bears to keep the reins and prod the 200-DMA support while the road towards the north appears bumpy in case the scheduled data offers a positive surprise.
by MTradingGlobal
GBPUSD bulls need 1.2870 breakout and strong UK GDPA bullish triangle joins Thursday’s rebound to lure GBPUSD buyers as markets await the first estimates of the UK Q2 GDP. However, fears of recession and the 1.2815-25 resistance confluence restrict Cable prices. That said, a convergence of the 100-SMA and top line of a six-week-old descending triangle together constitute the 1.2800-05 key hurdle for the buyers. Even if the Pound Sterling bulls manage to cross the 1.2805 resistance, the 200-SMA level of near 1.2825 and previous support line stretched from late May, close to 1.2870 will act as the final defenses of the sellers. On the contrary, a softer UK GDP outcome could quickly fetch the GBPUSD price towards the one-week-old horizontal support of around 1.2680. Following that, a broad support zone comprising multiple levels marked since late June, around 1.2620-2590, will be a tough nut to crack for the Cable bears. In a case where the Pound Sterling keeps the reins past 1.2590, the 1.2500 round figure and late May’s swing high near 1.2480 will be buffers during the south run towards May’s low of 1.2308. Overall, GBPUSD teases buyers but they have a tough task on hand to retake control.
by MTradingGlobal
GBPUSD sellers should keep eyes on 1.2760 and UK PMIGBPUSD marked the first weekly loss in three while slipping beneath the 100-SMA and an upward-sloping support trend line stretched from late June. Adding strength to the downside were bearish MACD signals and the RSI line’s reversal from the overbought territory. However, the MACD teases a bull cross as the RSI hovers around the oversold territory, which in turn suggests a corrective bounce in the Cable price. The same highlights a convergence of the 200-SMA and a two-month-old rising trend line, close to 1.2760 as the key level to watch as traders await the UK PMIs for July. In a case where the Pound Sterling drops below the 1.2760 support, the odds of witnessing the quote’s slump towards the late June swing low of around 1.2590 can’t be ruled out. However, the June start swing high of around 1.2550-45 and 78.6% Fibonacci retracement of its May-July upside, near 1.2480, can test the bears before directing them to the May month’s low of around 1.2310. Meanwhile, a convergence of the 100-SMA and the previous support line from late June, close to 1.2870 at the latest, restricts the immediate upside of the GBPUSD pair. Following that, the 1.2960 and the 1.3000 psychological magnet may challenge the buyers before giving them control. In that case, the yearly high marked earlier in the month of around 1.3145 will be in the spotlight. Overall, GBPUSD is likely to witness further downside but it all depends upon the UK data and 1.2760 break.
by MTradingGlobal
UK inflation and 1.3170 need to vouch for GBPUSD bullsGBPUSD extends pullback from a 15-month high, marked the last week, as it awaits the UK’s headline inflation data for June, per the Consumer Price Index (CPI) gauge. The pair previously cheered the US Dollar weakness to refresh the multi-month high before the fears of British recession weighed on the prices. The upside momentum also took clues from a clear break of a downward-sloping resistance line from May 2021 and the 200-week SMA. However, the overbought RSI highlights a horizontal area comprising multiple levels marked since December 2021, near 1.3170, as the immediate key hurdle to cross for the Cable buyers to keep the reins. Following that, the pair’s run-up toward the January 2022 low and 78.6% Fibonacci retracement of its May 2021 to September 2022 downturn, respectively near 1.3360 and 1.3440, can’t be ruled. On the contrary, downbeat UK inflation data and a failure to cross the 1.3170 resistance can trigger the GBPUSD pair’s pullback toward the 1.3000 psychological magnet before highlighting the 200-week SMA support, close to 1.2885 by the press time. In a case where the Pound Sterling falls below the 200-week SMA, the previous monthly low of around 1.2760 and the broad resistance-turned-support line, near 1.2520, will be in the spotlight for the pair sellers. Overall, GBPUSD bulls are near the testing point as the UK inflation data looms.
by MTradingGlobal
BEARISH IDEA ON POUND KIWI DOLLARBearish forecast on Pound/Kiwi Guys it has been a while, today we came out to you with our Bearish idea on GBPNZD. Pound has been trading low since Jul 2006, where I noticed falling resistance above the troughs/swings, view on W1. We have major resistance level daily, and weekly around 2.03166, and it has been tested on 17th Oct 2022. It bounced to weekly low around 1.95756 and from there I noticed bullish engulfing pattern and double bottom formed at the resistance level of 1.95756. I expect another retest to the major falling resistance line however if buyers find it easy can break the yearly resistance, but the fact we are trading in a long bearish range, I expect the bearish continuation if sellers manage to drag the price low of the resistance boundary at 1.95756. If sellers manage to break below the current support Daily TM, then we'll initiate selling to previous support level around 1.88578. I have detected bearish Harmonic Pattern with BAT setup at the same time, where the previous resistance reached the D which initiated from C&D Leg, with this I expect more selling run to reach at least 60% of D to C leg. I spotted the raising wedge from the price with 4H TM, which has been broken earlier, if price has to retest the broken falling wedge then we'll have to wait more, and we can expect some bullish run for few hours and days despite the fact we expect bearish movement.
Short
by CELGIB_TRADING
GBPUSD bulls losing strength ahead of BOEGBPUSD extends early-week pullback from a 2.5-month-old resistance line around a lower line of the bullish channel connecting multiple levels marked since mid-July. Considering the recently downbeat RSI and MACD conditions, as well as the Cable pair’s U-turn from the key resistance line, the sellers are likely to defy an upward sloping trend channel by keeping reins below 1.2120 nearby support. With this, a slump to the 200-SMA level surrounding 1.2080 appears imminent. However, multiple supports around 1.2050, the 1.2000 psychological magnet and the 1.1980 levels could test the bears afterward. In a case where the quote remains bearish below 1.1980, the odds of witnessing a fresh yearly low, currently around 1.1760, can’t be ruled out. Meanwhile, recover moves need to cross the 10-week-long resistance line, at 1.2250 by the press time, to recall GBPUSD buyers. Even so, the 61.8% Fibonacci retracement of the May-July downturn and the aforementioned channel’s upper line, respectively near 1.2320 and 1.2335, could challenge the bulls. It should be observed that the pair’s upside past 1.2335 needs validation from the mid-June swing high surrounding 1.2405 before directing the north-run to 78.6% Fibonacci retracement level and May’s peak, around 1.2475 and 1.2665 in that order. To sum up, GBPUSD fades upside momentum ahead of the key Bank of England (BOE) monetary policy. The British central bank is expected to announce a 0.50% rate hike but the details surrounding the economic conditions of the UK might favor the pair sellers.
by MTradingGlobal