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GBPUSD braces for further downside, 1.0930-20 eyed immediatelyGBPUSD holds onto the previous week’s downside break of the 50-SMA and a two-week-old support line, now resistance around 1.1160. Although the nearly oversold RSI suggests limited room towards the south, the bearish MACD signals keep the bears hopeful. That said, a horizontal area comprising the lows marked during late September, around 1.0930-20, lures intraday sellers. Following that, 1.0630 may offer an intermediate halt before directing the bears towards the record low printed in the last month around 1.0345. Alternatively, any recovery appears elusive unless the GBPUSD pair remains below 1.1160. Even if the cable pair crosses the 1.1160 hurdle the 61.8% Fibonacci retracement of late August-September downside, near 1.1320, will check the buyers. It should be noted that a downward-sloping resistance line from August 26, close to 1.1450 by the press time, seems the last defense of the bears, a break of which could trigger a short-term bullish trend. Overall, GBPUSD is on the way to the all-time low marked in the last month. However, the bears need validation from 1.0920 and the UK jobs report scheduled for publishing today.
by MTradingGlobal
GBPUSD faces uphill task to extend the latest reboundGBPUSD remains inside an eight-day-old bullish channel, as well as the 100-SMA, suggesting further upside. However, the 200-SMA and a downward sloping resistance line from August 26, respectively around 1.1430 and 1.1480, appear tough nuts to crack for the pair buyers. Also challenging the north-run is the RSI conditions which gradually approach the overbought territory. Even if the quote crosses the 1.1480 resistance, the aforementioned channel’s resistance line, near 1.1670, could challenge the cable buyers. Alternatively, the stated channel’s support line and the 100-SMA, around 1.1280 and 1.1200 in that order, act as the trigger for GBPUSD’s fresh selling. Following that, tops marked during late September, around 1.0930-15, could lure the bears. In a case where the prices remain weak past 1.0915, the year 1985 low near 1.0520 and the record low marked in the last month around 1.0345, will regain the market’s attention. Overall, GBPUSD fades upside momentum but the bears need to justify their strength to retake control.
by MTradingGlobal
GBPUSD stays on bear’s radar unless crossing 1.1280GBPUSD holds onto the rebound from an all-time low, marked the previous day, amid oversold RSI conditions. The recovery also crossed the previous record bottom printed in 1985. However, the 1.1000 round figure and a downside sloping support-turned-resistance line from May, around 1.1280 by the press time, restricts the Cable pair’s immediate rebound. Also acting as an upside filter is the year 2020 bottom surrounding 1.1420. Alternatively, the GBPUSD pair’s fresh weakness needs acceptance from Monday’s opening levels of around 1.0800, as well as the year 1985 bottom close to 1.0520. In a case where the quote remains bearish past 1.0520, the 1.0500 threshold and the latest trough surrounding 1.0340 could lure the sellers. It’s worth noting, however, that the pair’s weakness past 1.0340 could make it vulnerable to testing the 1.0000 psychological magnet. Overall, GBPUSD is likely to witness a corrective bounce but the buyers are far from retaking control.
by MTradingGlobal
GBPUSD breaks 1.1290 support ahead of BOE announcementsGBPUSD renews 37-year low, breaking four-month-old support line and 61.8% Fibonacci Expansion (FE) of the GBPUSD pair’s moves between August 17 and September 13, close to 1.1290, as traders await the Bank of England’s (BOE) monetary policy updates. Though the cable pair broke the nearby key support, now resistance around 1.1290, oversold RSI conditions and a likely positive surprise from the “Old Lady”, as the BOE is popularly known, tease the Cable pair buyers. In that case, the 5-DMA and a six-week-old resistance line, respectively around 1.1410 and 1.1560, could challenge the bulls. Following that, a one-month-long horizontal resistance area will precede the 50-DMA to restrict the quote’s further upside around 1.1740 and 1.1845 in that order. Alternatively, the 78.6% Fibonacci Expansion (FE) level near 1.1160 lures the GBPUSD bears unless it stays below 1.1290. In a case where the Cable pair drops below 1.1160, the odds of witnessing a slump towards the 1.1000 psychological magnet can’t be ruled out. Overall, GBPUSD seemed to have a little downside room ahead of the anticipated hawkish BOE.
by MTradingGlobal
GBPUSD eyes 1.1730 on bullish RSI divergence, channel breakoutGBPUSD crosses the monthly bearish channel, also the 50-SMA hurdle, after briefly declining to the lowest levels since 1985. The corrective bounce takes support from the bullish RSI divergence where the lower low on the prices contrasts with the higher low of the RSI (14), which in turn suggests brighter chances of the pair’s recovery. As a result, the buyers are on the way to the three-week-old horizontal resistance area near 1.1730-40. Should the quote manage to remain firmer past 1.1740, the 1.1900 and the 1.2000 thresholds could please the bulls afterward. Meanwhile, the stated channel’s upper line acts as the immediate support for the pair, around 1.1500. Following that, the weekly descending trend line surrounding 1.1400 seems to restrict short-term GBPUSD downside ahead of the lower line of the aforementioned bearish channel, close to 1.1340 at the latest. It’s worth noting, that the pair’s south-run past 1.1340 could keep grinding the quote slowly towards the 1.1000 psychological magnet. In a case where the pair remains bearish past 1.1000, the low marked in the year 1985 near 1.0520 will regain the market’s attention. To sum up, GBPUSD seems to have seen enough of the downside and the bull’s turn is just around the corner. However, the fundamentals are the key and should be read carefully for clear directions.
by MTradingGlobal
GBPUSD bears prepare for fresh yearly low, 1.1620 in focusGBPUSD dropped consecutively during the last four days to approach the yearly low marked in July, before recently bouncing off towards 1.1800. The bears, however, appear more dreadful this time as the RSI has comparatively more space to hit the oversold territory than the previous south-run to refresh the multi-day low of 1.1760. That said, the 1.1760 level may test the sellers before directing them to a convergence of the three-month-old descending trend channel and 61.8% Fibonacci Expansion (FE) of April 25 to August 01 moves, around 1.1620. Should the quote fail to reverse from the 1.1620 support confluence, the March 2020 lows near 1.1410 will gain the market’s attention. Alternatively, recovery moves remain elusive until the quote rises back beyond June’s low of 1.1935. Following that, the 1.2000 psychological magnet could lure the buyers. It should be noted, however, that the GBPUSD run-up beyond 1.2000 will challenge the convergence of the 21 DMA and 50 DMA, around 1.2080-85, which will be crucial to watch for a short-term trend change. To sum up, GBPUSD is on the bear’s radar for a fresh yearly low as traders brace for the flash PMIs for August.
by MTradingGlobal
GBPUSD bears stay on the way to 1.1890GBPUSD extended pullback from 100-SMA to refresh monthly low, before the recent corrective pullback near 1.1900. In doing so, the Cable pair also broke below the support area of a fortnight-old descending triangle. The downside break also takes clues from the bearish MACD signals, suggesting more to run towards the south. However, the late July swing low around 1.1890 will be in focus as the RSI quickly approaches the oversold territory and teases a bounce. Should the price remain weak past 1.1890, the yearly low marked in the last month, close to 1.1760 should lure the sellers. Alternatively, recovery moves could initially aim for the triangle’s upper line, at 1.2080 by the press time, a break of which could escalate the direct buyers towards the 100-SMA level surrounding 1.2130. It’s worth noting that multiple hurdles around 1.2200 could challenge the GBPUSD buyers afterward. Should the quote remain firmer past 1.2200, the odds of its refreshing the monthly top, close to 1.2190 at the latest can’t be ruled out. Overall, GBPUSD bears keep the reins but oversold RSI suggests limited room to the south.
by MTradingGlobal