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Sterlingdollar

GBPUSD portrays falling wedge at multi-month lowGBPUSD prints a falling wedge bullish chart pattern amid all the pessimism surrounding the UK economy and the hawkish Fed, not to forget the US dollar’s run-up. The recovery moves, however, need validation from the 1.1810 hurdle, as well as the 50-SMA resistance surrounding 1.1840. Following that, a three-week-long horizontal resistance near 1.2010 could test the bulls before directing them to the monthly high, currently around 1.2295. Meanwhile, pullback moves could retest the lower line of the stated falling wedge, close to 1.1640, while refreshing the multi-month low. Following that, the 1.1600 and the 1.1500 round figure may entertain the GBPUSD bears before highlighting the year 2020 bottom close to 1.1410. That said, the cable pair’s south-run past 1.1410 will make it vulnerable to drop towards the 1.1000 psychological magnet. Overall, GBPUSD bears seem running out of fuel but the recovery needs a strong push to convince buyers.
by MTradingGlobal
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