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Unitedkingdom

GBPUSD remains firmer as traders await UK GDPGBPUSD’s rally post-US inflation data enabled it to poke the 100-DMA for the first time since late February. The pair’s further upside, however, appears limited as bulls brace for the UK’s Q3 GDP amid fears of witnessing a clear sign of recession. That said, the 100-DMA hurdle of 1.1665 and the upper line of a five-week-old bullish channel’s resistance line, near 1.1750, could challenge the quote’s immediate advances. Following that, the 78.6% Fibonacci retracement level of August-September downside and the early August low, respectively near 1.1875 and 1.2000, could entertain the buyers. Meanwhile, pullback moves need a daily closing below the two-month-old resistance line, close to 1.1585 at the latest, to tease GBPUSD sellers. Even so, a convergence of the 50-DMA and 50% Fibonacci retracement level near 1.1330 will be a tough nut to crack for the bears. It’s worth observing that the previously stated bullish channel’s lower line, near 1.1210, appears the last defense of the buyers, a break of which won’t hesitate to challenge October’s low surrounding 1.0950. Overall, GBPUSD is on the bull’s radar ahead of the key UK GDP data. However, the quote’s further upside appears limited.
by MTradingGlobal
Technical Analysis: GBPUSD bulls need validation from 1.2110GBPUSD refreshed a three-week high on Tuesday while extending the breakout of 100-SMA. However, a convergence of the 200-SMA and a downward sloping trend line from June 16, around 1.2110 appears a tough nut to crack for the Cable pair buyers. Given the RSI’s nearness to the overbought territory, the upside momentum is less likely to overcome the key hurdle. However, a successful break of the 1.2110 could quickly propel the quote towards the June 30 peak near 1.2190. It’s worth noting that multiple resistances around 1.2230 and 1.2325-30 could challenge the pair buyers beyond 1.2190, before directing them to the previous monthly peak of 1.2405. Meanwhile, pullback moves may dribble around 1.2050-45 and the 100-SMA level surrounding 1.1960. Following that, an ascending support line from mid-July, close to 1.1940, will be crucial to watch for further downside. In a case where the GBPUSD prices remain weak past 1.1940, the 1.1800 round figure may act as an intermediate halt before directing the bears toward the monthly low, also the yearly bottom, surrounding 1.1760. Overall, GBPUSD bulls approach the key resistance, a break of which can reverse the downtrend, at least for the short term.
by MTradingGlobal