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GBPUSD: Focus on 50-SMA, key horizontal support and Fed MinutesGBPUSD struggles to hold onto early gains after bouncing off a three-month support level. As bearish momentum builds, traders closely watch for insights from the upcoming Federal Open Market Committee (FOMC) meeting minutes. Multiple catalysts favoring Cable sellers The Pound Sterling is finding it hard to sustain a rebound from the 12-week-old support zone. Bearish MACD signals and downbeat RSI (14) add to the negative sentiment. Additionally, last week's confirmation of a bearish rising wedge pattern enhances the resolve of GBPUSD sellers, pointing to continued downward pressure. Key technical levels to watch While sellers currently dominate the GBPUSD market, the 50-day SMA around 1.3085 poses an immediate challenge to further declines, with crucial support around 1.3060-1.3040 just below. If these levels break, the 100-day and 200-day SMAs at 1.2935 and 1.2780 could test sellers before directing them to the bearish pattern’s theoretical target of 1.2450. A corrective bounce for GBPUSD seems unlikely to gain credence unless it breaks above the wedge's lower line near 1.3280. That said, the immediate resistance levels are at 1.3100 and 1.3200. If the price holds above 1.3280, bulls may aim for a yearly high of approximately 1.3435 and the wedge's upper line around 1.3510. Bears to dominate Considering the bearish technical signals and the potential for the US Dollar to consolidate its previous monthly losses—supported by positive economic data and a hawkish Federal Reserve bias—the GBPUSD pair is likely to decline further. This outlook holds unless today’s Fed Minutes and Thursday’s Consumer Price Index (CPI) data underperform, which could dampen the US Dollar's strength.
by MTradingGlobal
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GBPUSD: Overbought RSI, key resistance test buyersGBPUSD bulls are pausing at their highest level since February 2020, marking six days of gains despite a slow market atmosphere. That said, the Pound Sterling is facing a liquidity squeeze as we approach key data and events this week, which could impact its upward momentum at these multi-month highs. Pullback appears imminent but bulls can keep the reins Apart from the market’s anxiety ahead of this week’s key catalysts, the overbought RSI (14) line and a 10-week-old ascending resistance line, close to 1.3430 at the latest, suggest consolidation in the GBPUSD prices. Important technical levels A pullback in GBPUSD seems likely, with key short-term support levels at the 61.8% and 50.0% Fibonacci extensions of the quote’s August-September moves, respectively near 1.3375 and 1.3300. However, the previous monthly high near 1.3265 and the 21-SMA at 1.3190 are important, as they align with the bottom of a bearish wedge pattern near 1.3140, which could act as a final defense for buyers. On the flip side, for buyers to regain control, they need to break through the 1.3440 resistance. If they succeed, GBPUSD could target the February 2022 peak of around 1.3645 and the 2022 high of 1.3748. A sustained move above 1.3750 could even lead to a challenge of the psychological level at 1.4000. All eyes on US data/events Technical indicators for GBPUSD suggest a pullback may be on the horizon, even as recent U.S. factors favor ongoing Federal Reserve rate cuts throughout 2024. Therefore, key insights from Fed Chairman Jerome Powell’s speech on Thursday and the U.S. Core PCE Price Index— the Fed’s preferred measure of inflation—on Friday will be vital for determining the market's direction.
by MTradingGlobal
GBPUSD bounces off 100-SMA but bears stay hopefulThe GBPUSD saw its first daily gain in three days on Wednesday, bouncing back from the 100-day Simple Moving Average (SMA). This move shows the 100-SMA support level at 1.2682 is holding strong, and the descending RSI (14) indicates the downtrend is weak. However, the Pound Sterling’s continued dip below the 50-SMA and previous support level near 1.2785-2800, along with bearish MACD signals, keep sellers hopeful. If the price stays above 1.2800, the March peak around 1.2900 and the top of a 10-month-old upward trend channel near 1.3030 will be challenging for buyers. On the other hand, the 100-SMA and 200-SMA are limiting the GBPUSD's short-term decline, with support around 1.2680 and 1.2650. After that, the 50% and 38.2% Fibonacci retracement levels from the pair's July-October 2023 drop, near 1.2590 and 1.2455, will be key for sellers. Overall, Pound Sterling buyers can stay in control as long as the 10-month-long upward trend channel, which ranges from 1.3030 to 1.2440, remains intact. In summary, GBPUSD is expected to test the sellers, but for the bullish trend to continue, it needs to stay above 1.2800.
by MTradingGlobal
GBPUSD stays on bear’s radar ahead of UK inflation, BoEGBPUSD stays defensive after recovering from a one-month low in the last two days. That said, the Cable pair’s latest inaction could be linked to the trader’s cautious mood ahead of the UK’s top-tier data/events, namely Wednesday’s Consumer Price Index (CPI) and Thursday’s Bank of England (BoE) Monetary Policy Announcements. However, the quote’s sustained trading beneath a nine-week-old ascending trend channel and a convergence of the 50 and 100-bar Exponential Moving Averages (EMAs) keep the Pound Sterling sellers hopeful. Even if the pair manage to cross the aforementioned EMA confluence of around 1.2725-30 and also trade successfully beyond the stated channel’s bottom line, close to 1.2765 at the latest, a three-week-old ascending resistance line surrounding 1.2885 will challenge the upside momentum. On the flip side, a fortnight-long horizontal support region surrounding 1.2640 and the 1.2600 threshold restricts short-term declines of the GBPUSD pair. Following that, the previous monthly low of nearly 1.2445 and the yearly bottom marked in April around 1.2300 may entertain the Pound Sterling sellers. In a case where the Cable pair remains bearish past 1.2300, it becomes vulnerable to slump toward the late 2023 low of near 1.2035 and then to the 1.2000 psychological magnet. To sum up, the GBPUSD pair’s latest rebound appears elusive as it keeps the previous week’s downside break of technical supports, now resistances. Also favoring the pair sellers is an absence of oversold RSI and likely downbeat UK catalysts.
by MTradingGlobal
GBPUSD keeps Fed-inflicted bearish consolidation ahead of BoEGBPUSD remains pressured within a six-week-old descending triangle as market players await the Bank of England’s (BoE) monetary policy announcements. In doing so, the Cable pair justifies the US Federal Reserve’s (Fed) hawkish halt, as well as expectations suggesting the BoE’s rate cut in 2024. It’s worth noting, however, that the 50-SMA level of 1.2670 and an ascending support line from late November, close to 1.2650 at the latest, offer intermediate supports to the Cable pair within the aforementioned triangle, currently between 1.2600 and 1.2750. Apart from the triangle in play, the 200-SMA surrounding 1.2560 acts as an extra filter toward the south. Meanwhile, an upside clearance of the stated triangle’s top line, near 1.2750 by the press time, will quickly propel the Pound Sterling toward the previous monthly high of around 1.2830. Following that, the late July peak of 1.3000 will act as the final defense of the GBPUSD bears, a break that won’t hesitate to fuel the prices toward the year 2023 high of near 1.3145. Overall, the BoE is likely to keep the interest rate unchanged but the tone of the British central bank isn’t expected to maintain the optimism like the US Federal Reserve (Fed), which in turn will weigh on the GBPUSD pair unless witnessing a surprise.
by MTradingGlobal
GBPUSD rebounds within bullish triangle as UK, US PMIs loomGBPUSD floats above the 200-bar Exponential Moving Average (EMA) as traders brace for the monthly activity data from the UK and the US early Wednesday. In doing so, the Cable pair reverses the previous day’s losses while staying firmer within a one-month-old descending triangle formation, also known as the bullish triangle. Apart from the pair’s recovery from the key EMA and bullish chart pattern, the upbeat RSI (14) line also favors the continuation of the Pound Sterling’s gradual rebound. However, a clear upside beak of the stated triangle, currently between 1.2600 and 1.2750, becomes necessary to convince the buyers. Following that, the quote’s run-up to the previous monthly high surrounding 1.2830 becomes imminent. However, the bull’s dominance past 1.2830 will enable the pair to aim for the 1.3000 threshold. On the contrary, the 200-EMA level surrounding 1.2660 restricts the immediate downside of the GBPUSD pair ahead of the aforementioned triangle’s bottom line, close to 1.2600. In a case where the Pound Sterling drops below 1.2600, the odds of witnessing a quick fall toward December’s low of around 1.2500 can’t be ruled out. Should the Cable bears keep the reins past 1.2500, the lows marked on November 22 and 17, respectively near 1.2445 and 1.2375, will test the downside momentum. To sum up, the GBPUSD pair buyers flex muscles ahead of the key Purchasing Managers Index (PMI) data for January from the UK and the US.
by MTradingGlobal
GBPUSD bears approach key supports as UK, US data loomGBPUSD remains pressured at the lowest level in eight days after breaking a five-week-long trend line support the previous day. Apart from the support break, bearish MACD signals and an absence of oversold RSI also keep the Cable sellers hopeful. With this, the quote’s further downside toward the 1.2600 support confluence, comprising a 50% Fibonacci retracement of July-October downside and 50-SMA, appears imminent. However, the 200-SMA level surrounding 1.2545 appears a tough nut to crack for the Pound Sterling sellers, a break of which will make the pair vulnerable to slump toward the 1.2330-20 support zone comprising multiple levels marked since late May 2023. Alternatively, the GBPUSD pair’s corrective bounce needs validation from the aforementioned previous support line, close to 1.2665 at the latest, to convince the short-term buyers. Following that, a 5.5-month-old horizontal resistance area near 1.2790, quickly followed by the 1.2800 threshold, will test the quote’s further upside. In a case where the Cable buyers manage to keep the reins past 1.2800, the 11-week-long support-turned-resistance near 1.2890 and the 1.2900 round figure will be the last defense of the Pound Sterling sellers. Apart from the bearish technical signals, the comparative economic pessimism surrounding the UK and recent hawkish bias about the Federal Reserve (Fed) also keeps the GBPUSD sellers hopeful as the UK inflation and the US Retail Sales loom.
by MTradingGlobal
GBPUSD fades bounce off 200-SMA after three-week uptrendGBPUSD prints mild losses around 1.2700 early Monday, after snapping a three-week uptrend in the last. In doing so, the Cable pair justifies the previous week’s downside break of a two-month-old rising support line, now immediate resistance around 1.2765, as well as fades the bounce off a 200-SMA level surrounding 1.2635. However, the upbeat conditions of the RSI (14) line and the bullish MACD signals keep the buyers hopeful unless the quote slips beneath the stated key SMA, a break of which could quickly drag the quote toward December’s low of 1.2500. It should be noted that the Pound Sterling’s weakness past 1.2500 will have the 61.8% Fibonacci retracement level of near 1.2375 as the last defense of the buyers. On the flip side, the GBPUSD pair buyers can regain control by crossing the support-turned-resistance line of around 1.2765. Following that, the recent peak surrounding 1.2830 and an ascending trend line from late November, close to 1.2860 at the latest, could check the Pound Sterling’s upside momentum ahead of directing the bulls toward the 1.3000 psychological magnet. Should the quote remain firmer past the 1.3000 threshold, the previous yearly high of nearly 1.3145 will be in the spotlight. To sum up, the GBPUSD pair buyers are likely losing control the sellers need validation from the 200-SMA breakdown to retake control.
by MTradingGlobal
GBPUSD retreat appears elusive beyond 1.2650GBPUSD extends the late 2023 pullback from a five-month-old horizontal resistance area towards 1.2700 during early Tuesday. In doing so, the Cable pair justifies the RSI (14) line’s retreat from the overbought region, as well as the sluggish MACD signals. However, the bull cross on the SMA joins the quote’s sustained trading beyond an ascending trend line from November 01, close to 1.2650 at the latest, to keep the buyers hopeful. It’s worth noting that a clear downside break of 1.2650 will quickly drag prices to the 50-SMA support of 1.2490, a break of which will allow the 100-SMA level of 1.2450 to test the bears. On the flip side, GBPUSD buyers should remain cautious unless they witness a clear upside break of the aforementioned horizontal resistance area surrounding 1.2800-2820. Following that, the Pound Sterling buyers could aim for a late July swing high of near the 1.3000 psychological magnet. Although the RSI conditions are likely to test the bulls around the stated round figure, the pair’s successful trading beyond the same will easily surpass the year 2023 peak near 1.3145. Overall, the GBPUSD pair may witness further downside but the bears are less likely to retake control beyond 1.2650.
by MTradingGlobal
GBPUSD drops towards 1.2200-2190 support confluenceGBPUSD remains on the way to posting a weekly loss after declining in the last four consecutive days, pressured around 1.2220 during early Friday. The Cable pair’s U-turn from the seven-week-old horizontal resistance area and the broadly firmer US Dollar join bearish MACD signals to underpin the downside bias. However, the cautious mood ahead of the key UK GDP and the US consumer sentiment details join a convergence of the 100-SMA, SMA and a fortnight-long rising trend line to challenge the pair bears around 1.2200-2190. In a case where the Pound Sterling drops below 1.2190, the monthly low of around 1.2095 and the late October bottom surrounding 1.2070 could lure the bears before probing them with the previous monthly trough near 1.2035 and the 1.2000 psychological magnet. On the flip side, the 50% and 61.8% Fibonacci retracement levels of the GBPUSD pair’s September-October downside, respectively near 1.2300 and 1.2355, guard near-term recovery. Following that, the aforementioned horizontal resistance surrounding 1.2425-30 will be a tough nut to crack for the Pound buyers. It should be noted, however, that the quote’s ability to stay firmer past 1.2430 enables the bulls to challenge the late September swing high of around 1.2550. Overall, the GBPUSD pair remains on the bear’s radar unless it stays below 1.2430. Hence, any data-driven rebound will be elusive below the stated upside hurdle and needs to be traded with caution.
by MTradingGlobal
GBPUSD rebound approaches key upside hurdle on BoE DayGBPUSD picks up bids to extend the previous day’s rebound from an eight-month-old ascending support line as the Cable traders await the Bank of England (BoE) monetary policy decision on Thursday. While recovering from the stated support line, the Pound Sterling respects the upward-sloping RSI (14) line and the bullish MACD signals, which in turn suggests the quote’s further upside. However, a falling resistance line from mid-July, close to 1.2220 by the press time, guards the immediate upside of the pair. It’s worth noting that a clear upside break of 1.2220 will allow the bulls to challenge the previous monthly high of around 1.2340 but a convergence of the 100-day and 200-day Exponential Moving Average (EMA), currently near 1.2400, will be a tough nut to crack for the buyers afterward. On the contrary, the GBPUSD pullback needs validation from the aforementioned support line and 78.8% Fibonacci retracement of March-July upside, close to 1.2080. Following that, October’s bottom of around 1.2035 and the 1.2000 threshold will test the Cable bears before giving them control. In that case, the yearly low marked in March around 1.1800 will be in the spotlight. To sum up, a GBPUSD rebound appears imminent but the BoE’s likely dovish halt and stated EMA confluence prod the bullish bias.
by MTradingGlobal
GBPUSD stays pressured on UK inflation dayGBPUSD prints mild losses below 1.2200 during early Wednesday as market players await the UK inflation data while consolidating the week-start gains of the Cable pair. That said, a likely easing inflation pressure in Britain joins the downbeat RSI (14) and the impending bear cross on the MACD keeps the pair sellers hopeful. With this, the quote’s fall toward the 78.6% Fibonacci retracement of March-July upside, near 1.2090, becomes imminent. However, a seven-month-old upward-sloping support line surrounding 1.2070 appears a tough nut to crack for the pair sellers afterward. In a case where the bears manage to conquer the 1.2070 support, the 1.2000 psychological magnet and March’s bottom of around 1.1800 will be in the spotlight. On the contrary, GBPUSD recovery needs validation from the strong UK inflation data and the US Dollar’s weakness to convince intraday buyers. Additionally, a three-month-long descending trend line, close to 1.2280 at the latest, holds the key to the bull’s conviction. Following that, the Cable pair’s run-up toward the 200-day SMA level of around 1.2445 can’t be ruled out. It’s worth observing that the Pound Sterling’s successful trading above 1.2445 will aim for August month’s low of around 1.2550 while May’s high of 1.2680 could lure the optimists after. Overall, GBPUSD is likely to witness further downside but the road toward the south is long and bumpy.
by MTradingGlobal
GBPUSD rebound appears elusive below 1.2510GBPUSD seesaws at a three-week high ahead of the UK data dump, probing a six-day winning streak. However, the RSI (14) line steadies near the overbought region and joins a looming bear cross on the MACD to suggest that the bulls are running out of steam. With this, a pullback towards the late September swing high of around 1.2270 becomes imminent but a convergence of the 100-SMA and 23.6% Fibonacci retracement of the pair’s August-October downturn, near 1.2215, appears a tough nut to crack for the Cable bears afterward. Even if the quote drops below 1.2215, the previous resistance line stretched from late August, close to 1.2090 by the press time, will precede the monthly low of around 1.2035 and the 1.2000 threshold to act as final defenses of the Pound Sterling buyers. Meanwhile, the 38.2% Fibonacci ratio of nearly 1.2320 guards the immediate recovery of the GBPUSD pair ahead of the 200-SMA hurdle of 1.2375. Following that, the 50% Fibonacci retracement surrounding 1.2415 can lure the Cable bulls. Above all, the 1.2510 resistance confluence comprising a convergence of the seven-week-long descending trend line and the 61.8% Fibonacci retracement, also known as the Golden Ratio, will challenge the Pound Sterling buyers before giving them control. In a case where the pair remains firmer past 1.2510, the odds of witnessing a run-up towards the August 30 peak of around 1.2750 can’t be ruled out. To sum up, the bullish momentum fades but the road toward the south is long and bumpy while the upside needs validation from 1.2510.
by MTradingGlobal
GBPUSD appears vulnerable to test multi-month-old support lineGBPUSD remains pressured at the lowest level in seven months, reversing the previous week’s corrective bounce, as the Cable traders await final prints of the UK S&P Global/CIPS PMIs for September. It’s worth noting that a clear downside break of an eight-month-old horizontal support zone joins the bearish MACD signals to keep the Pound Sterling bears hopeful. However, the oversold RSI (14) line and 50% Fibonacci retracement of October 2022 to July 2023 upside, near 1.2040, restricts the immediate downside of the pair. Following that, the 1.2000 psychological magnet and an ascending support line from November, close to 1.1890 by the press time, will entertain the bears. In a case where the quote remains bearish past 1.1890, the 61.8% Fibonacci ratio of around 1.1780 will be the last defense of the buyers. On the contrary, the previous weekly low of around 1.2110 restricts the nearby downside of the GBPUSD pair ahead of the 10-SMA level surrounding 1.2170. More importantly, the support-turned-resistance area comprising multiple levels marked since February, near 1.2310–2270, appears a tough nut to crack for the Cable pair buyers to cross past 1.2170. Should the Pound Sterling remain firmer past 1.2170, a three-month-long descending resistance line surrounding 1.2470 will be crucial for the bulls to cross before retaking control. Overall, GBPUSD is likely to remain bearish even as the downside room appears limited.
by MTradingGlobal
GBPUSD jostles with multi-month-old support around 1.2200GBPUSD stays depressed at the six-month low even as bears struggle with a horizontal area comprising multiple levels marked since early February. Also challenging the downside bias is the oversold RSI (14) line. With this, a corrective bounce toward May’s bottom of around 1.2310 can be witnessed. However, the 200-SMA on the daily chart, around 1.2435 at the latest, appears a tough nut to crack for the Cable pair buyers afterward. Even if the Sterling manages to cross the 1.2435 hurdle, a downward-sloping resistance line from July, close to 1.2540 by the press time, will act as the last defense of the pair bears. On the contrary, the Pound Sterling’s sustained weakness beneath the 1.2200-2190 key support zone could quickly drag it to the 38.2% Fibonacci retracement of September 2022 to July 2023 upside, near 1.2090. Following that, the 1.2000 psychological magnet and a 10-month-old broad support area surrounding 1.1900-1860, adjacent to the yearly low of around 1.1800, will be in the spotlight. Overall, GBPUSD bears appear running out of steam but the bulls have a long and bumpy road to travel before taking control.
by MTradingGlobal
GBPUSD sellers keep their eyes on 1.2200 and BoE decisionGBPUSD renews a 5.5-month low while extending the previous week’s downside break of the 200-day SMA, as well as drilling the 61.8% Fibonacci retracement of March-July upside. In doing so, the Cable pair ignores the oversold RSI (14) line while taking clues from the bearish MACD signals, which in turn suggests limited downside room for the Pound Sterling. As a result, a horizontal support zone comprising multiple levels marked since early February, around 1.2200, will be the key to watch during the quote’s further downside. In a case where the pair declines below 1.2200, the 78.6% Fibonacci retracement and February’s low, respectively near 1.2090 and 1.1800 will be in the spotlight. That said, the 1.2000 psychological magnet may offer intermediate stops during the pair’s fall towards the 1.1800. On the contrary, a daily closing beyond the 200-day level of around 1.2435 becomes necessary for the intraday buyer’s turn. Even so, the 50% Fibonacci retracement and a downward-sloping resistance line from July, close to 1.2480 and 1.2570 in that order, will be tough nuts to crack for the GBPUSD buyers before retaking control. Should the Pound Sterling remain firmer past 1.2570, May’s peak of around 1.2680 will act as the final defense of the Cable bears. Overall, GBPUSD is likely to remain bearish, unless the Bank of England (BoE) surprises, even as the downside room appears limited.
by MTradingGlobal
GBPUSD recovery hopes to stay valid beyond 1.2430GBPUSD consolidates losses made in the last three consecutive weeks ahead of the UK’s employment report. Adding strength to the recovery momentum is the RSI (14) line’s rebound from the oversold territory, as well as a six-week-old falling wedge bullish chart formation, which in turn suggests an immediate run-up to cross the 1.2600 round figure. However, the upward trajectory needs validation from the stated wedge’s top line, close to 1.2640 by the press time, to highlight the theoretical target of around 1.3190. During the theoretical run-up, the 50-SMA level of around 1.2750, June’s high surrounding 1.2850 and the 1.3000 psychological magnet will act as intermediate halts. Meanwhile, the 50.0% Fibonacci retracement of the pair’s March-July upside, near 1.2470, limits the immediate downside of the GBPUSD pair. That said, a convergence of the 200-SMA and the wedge’s bottom line, close to 1.2430, appears a tough nut to crack for the Cable pair sellers. It’s worth noting that a clear downside break of the 1.2430 support confluence won’t hesitate to quickly drag the Pound Sterling to the 61.8% Fibonacci retracement level surrounding 1.2315 before testing the mid-March swing high of around 1.2200. Overall, GBPUSD buyers are in the driver’s seat ahead of the UK employment data.
by MTradingGlobal
GBPUSD buyers remain hopeful despite latest disappointmentGBPUSD managed to confuse pair sellers last week by defending a one-month-long falling wedge bullish chart pattern despite declining in the later days. Also challenging the Cable pair’s downside is a weeklong rising support line, as well as a nearly oversold RSI (14) line. It’s worth noting, however, that the MACD still flashes the bearish signals and hence the Pound Sterling buyers need to wait for a clear upside break of the stated wedge’s top line surrounding 1.2720, as well as the 200-SMA of near 1.2755, to retake control. That said, a horizontal support-turned-resistance stretched from early August, close to 1.2620, guards the pair’s immediate recovery whereas a clear break of 200-SMA will enable the quote to challenge the yearly top marked in July around 1.3145, with a likely pause in the run-up around the 1.3000 round figure. Meanwhile, a downside break of the immediate one-week-old rising support line surrounding 1.2580 could convince GBPUSD bears to test the falling wedge bullish formation. In doing so, the quote will poke the wedge’s bottom line of around 1.2530. Should the Cable pair sellers dominate past 1.2530, the odds of witnessing a gradual downside toward May’s bottom near 1.2300 can’t be ruled out. Overall, GBPUSD bears run out of steam but the recovery needs validation from 1.2755, as well as this week’s key data/events.
by MTradingGlobal
GBPUSD appears ready for further downside towards 200-SMAGBPUSD remains on the back foot while justifying a downside break of a 5.5-month-old rising support line and the 100-SMA. Also keeping the Cable bears hopeful are the bearish MACD signals. However, the nearly oversold RSI conditions suggest limited room towards the south, which in turn highlights the 200-SMA level of around 1.2400 as the key support. It’s worth noting that the 50% Fibonacci retracement of the March-July fall, close to 1.2470, acts as an immediate check of the sellers while the 61.8% Fibonacci retracement of near 1.2310, also known as the golden ratio, will challenge the sellers past 200-SMA. On the contrary, the GBPUSD pair’s corrective bounce needs validation from the 100-SMA hurdle of 1.2645. Following that, a convergence of the 21-SMA and the previous support line from mid-March, surrounding 1.2700, appears a tough nut to crack for the Cable buyers. In a case where the Pound Sterling remains firmer past 1.2700, the gradual upside toward June’s peak of 1.2848 can’t be ruled out. Overall, GBPUSD appears well set for further downside even if the road towards the south appears bumpy.
by MTradingGlobal
GBPUSD eyes further upside, 1.2830 challenges buyersGBPUSD gained buyer’s attention after snapping a four-week downtrend the last week. Adding strength to the upside bias is the Cable pair’s confirmation of the descending triangle bullish chart pattern. However, a clear upside break of the stated triangle’s upper line, close to 1.2740 by the press time, as well as successful trading beyond the 200-SMA hurdle of 1.2830 becomes necessary for the Pound Sterling bulls to retake control. Following that, the late July swing high of around the 1.3000 psychological magnet will act as a buffer during an expected ride towards challenging the yearly top marked the last month near 1.3145. On the contrary, multiple supports around 1.2700 and 1.2650 restrict the short-term downside of the GBPUSD pair. However, the Cable’s bearish bias remains elusive unless witnessing a clear break of the previously stated triangle’s bottom line, close to 1.2625 by the press time. It’s worth noting that the Pound Sterling’s sustained weakness beneath 1.2625 may seek confirmation from the late June swing low of around 1.2590 before targeting May’s bottom of 1.2310. Overall, GBPUSD lures buyers but the upside needs validation from 1.2830.
by MTradingGlobal
GBPUSD signals further downside on BoE DayA daily closing beneath the 1.2720 support confluence, now resistance, teases the GBPUSD bears as Bank of England (BoE) policymakers brace for another interest rate hike. Apart from a sustained break of the 50-DMA and five-month-old rising trend line, bearish MACD signals and the descending RSI line, not oversold, also keeps the Cable sellers hopeful of revisiting the 100-DMA support of around 1.2570. However, the quote’s further downside past 1.2570 will make the Pound Sterling vulnerable enough to slump toward May’s bottom surrounding the 1.2300 round figure. Though, the early April swing high of near 1.2550 and the 1.2500 threshold can test the downside moves. On the contrary, a dovish hike or a surprise pause in the hawkish cycle could trigger a U-turn and fetch the GBPUSD pair back above the 1.2720 support-turned-resistance confluence comprising the 50-DMA and a multi-day-old ascending trend line. Following that, June’s high of near 1.2850 and the late July peak close to the 1.3000 psychological magnet will be on the Cable buyer’s radar. Should the Pound Sterling remains firmer past 1.3000, the odds of witnessing a fresh yearly high, currently around 1.3145, can’t be ruled out.
by MTradingGlobal
GBPUSD renews multi-month high near 1.2900GBPUSD printed the first weekly gain in three after the US Dollar’s fall post-NFP. Following that, the Cable pair crossed the 1.2850 resistance, as well as defy the bearish triangle to rise to the highest level since April 2022. It’s worth noting that the bearish RSI divergence, where the price made a higher high but the indicator marked a lower high, suggests a lack of bullish momentum. However, the sellers need to confirm the bearish triangle break by slipping beneath the 1.2680 support, as well as witness downbeat UK employment data. Following that, the early June swing high of around 1.2550, the 100-DMA level near 1.2420 and May’s low near 1.2310 can act as intermediate halts before directing the quote toward the theoretical target of the bearish triangle, namely the 1.2140 level. Meanwhile, a clear upside break of the 1.2850 hurdle on the daily closing basis becomes necessary for the GBPUSD upside toward the 1.3000 psychological magnet. It should be noted that the UK employment report needs to back the upside break of 1.2850 to keep the Pound Sterling buyers hopeful. Following that, a slew of supports and resistances marked between December 2021 and April 2021 highlight the 1.3150-60 region as the key challenge for the pair buyers. Overall, GBPUSD is likely to return to the bear’s radar after a few weeks of absence. Though, the fundamentals need to back the Cable sellers.
by MTradingGlobal
GBPUSD recovery appears elusive below 1.2850GBPUSD defends the last Thursday’s rebound from the 200-EMA to brace for the first weekly gain in three. The Cable pair’s recovery also takes clues from the upbeat RSI (14) line and the bullish MACD signals, which in turn suggest room for further upside. The same highlights a three-week-old horizontal resistance zone around 1.2760-70 as the short-term key hurdle. Following that, multiple tops marked around 1.2840-50 can act as the last defense of the Pound Sterling bears. In a case where the quote remains firmer past 1.2850, the 61.8% Fibonacci Expansion (FE) of May 25 to June 29 moves, near 1.2930, followed by the 1.3000 psychological magnet, will lure the buyers. On the contrary, a broad support zone comprising levels marked since early May challenges the GBPUSD bear’s entry between 1.2690-70. Should the quote Cable bears manage to conquer the 1.2670 support, the 200-EMA level of around 1.2615 and the 1.2600 round figure will be on their radars. However, a six-week-old ascending support line, close to 1.2580 at the latest, seems a tough nut to crack for the Pound Sterling sellers, a break of which will give back powers to them. Overall, GBPUSD remains firmer but the room towards the north appears limited.
by MTradingGlobal