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Rising wedge confirmation teases GBPUSD bearsAfter a rollercoaster ride on the BOE moves, GBPUSD bears flex muscles with eyes on Thursday’s UK Q4 GDP. The week’s start has already confirmed a rising wedge bearish pattern but the sellers need validation from 50-SMA 1.3490. Theory suggests a sustained downtrend past 1.3490 will recall 1.3330-25 levels on the chart. However, 61.8% Fibonacci retracement (Fibo.) of December-January advances near 1.3385 and the previous month’s low near 1.3355 may offer intermediate halts during the run-up. Alternatively, corrective pullback remains elusive below the 200-SMA level of 1.3525, a break of which will direct GBPUSD buyers towards the 1.3600 threshold. It’s worth noting that a two-week-old rising trend line, forming part of wedge near 1.3635, can challenge the cable pair’s upside past 1.3600 but sustained trading beyond the same won’t hesitate to propel the rally towards 2022 peak surrounding 1.3750. To sum up, GBPUSD consolidates recent gains but the bears need validation from data and chart both.
by MTradingGlobal
GBPUSD remains vulnerable to refresh 2021 lowDespite defending 1.3170 multiple times since December 09, the GBPUSD pair’s failure to cross a five-week-old ascending trend line, not to forget 200-SMA, keeps sellers hopeful. Adding to the bearish bias are the downbeat MACD conditions. That said, the yearly low of 1.3160 adds to the downside filters, in addition to the 1.3170 multiple bounce point. Should the bears keep reins past 1.3160, the 61.8% Fibonacci Expansion of November 09 to December 16 moves, around 1.3100 will be in focus. Alternatively, the 200-SMA level surrounding 1.3350 precedes the aforementioned trend line resistance of 1.3380 to challenge short-term GBPUSD rebound. If the pair buyers manage to cross the 1.3380 hurdle, November 18 high and 78.6% Fibonacci retracement level, close to 1.3510, will be on their radar. To sum up, the pair buyers have tried multiple times to retake controls but bears are in a mood to refresh the yearly bottom during the last days of 2021.
Short
by MTradingGlobal
GBPUSD keeps bearish consolidation towards 1.3320 on UK GDP dayGBPUSD posts a corrective pullback from the yearly low of around 1.3425 ahead of the UK data dump, comprising preliminary readings of the UK Q3 GDP. Even so, the cable pair needs a daily closing beyond September’s bottom of 1.3411, as well as the 50% Fibonacci retracement level near 1.3460, to convince short-term buyers. Even so, lows marked in July and 200-SMA, respectively around 1.3575 and 1.3845, become tough nuts to crack for the bulls. Meanwhile, oversold RSI conditions may trigger corrective pullback on the way to the four-month-old support line near 1.3320. Following that, 61.8% Fibonacci retracement level and October 2020 peak, close to 1.3270 and 1.3175 in that order, will question the GBPUSD bears before directing them to the sub-1.3000 area. Overall, the sterling remains in the bearish trajectory but intermediate pullbacks can’t be ruled out.
Short
by MTradingGlobal
GBPUSD struggles to extend bounce off 21-DMA post UK GDPGBPUSD fails to cheer upbeat UK GDP figures as market plays await fresh clues to confirm the Fed tapering chatters. Even so, the cable keeps the previous day’s rebound from 21-DMA amid firmer RSI, suggesting further recovery towards the 1.3900 round figure. However, a convergence of 21-DMA and a downward sloping trend line from June 11, around 1.3925-30, becomes the key hurdle. In a case where the pair buyers cross 1.3930 resistance, July’s top surrounding 1.3985 may test the bulls before offering them a free pass to ride beyond the 1.4000 psychological magnet. Meanwhile, a daily closing below the 21-DMA level of 1.3830 becomes necessary for the Sterling bear’s entry. Following that, the early July’s low near 1.3730 and bottoms marked in March and April, around 1.3670, will challenge the GBPUSD sellers. Although the quote is likely to consolidate around 1.3670 before declining further, a clear south-run below the same horizontal support may not hesitate to visit the previous month’s low, near 1.3570.
by MTradingGlobal