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U.S. Dollar / Pound Sterling

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USDGBP trade ideas

GBPUSD prints bullish consolidation ahead of UK employment dataGBPUSD portrays a bullish megaphone trend widening formation as the Cable traders await the UK employment report on Tuesday. The quote’s latest rebound from the stated pattern’s bottom line allowed it to cross the weekly resistance line. However, a clear upside break of the 100-SMA and 23.6% Fibonacci retracement of the March-May upside, near 1.2525, becomes necessary for the buyer’s conviction. Following that, a fortnight-long horizontal hurdle around 1.2585 and the 1.2600 round figure may act as extra checks for the Cable buyers before directing them to the megaphone’s top line, close to the 1.2700 round figure. It should be noted that the latest multi-month peak of near 1.2680 and likely overbought RSI conditions around then may challenge the bulls ahead of the 1.2700 hurdle. Alternatively, GBPUSD pullback remains elusive unless the quote breaks a convergence of the stated megaphone’s lower line and the previous resistance line from May 10, close to 1.2445 at the latest. Should the quote drop below the stated key support, a quick decline to the 50% Fibonacci retracement level of around 1.2340 can’t be ruled out. Additionally, the Cable pair’s weakness past 1.2340 makes it vulnerable to challenge the previous monthly low of around 1.2270. Overall, GBPUSD is likely to grind higher but a surprise disappointment from the UK jobs report, like the last week’s BoE, can drag the quote lower.
by MTradingGlobal
GBPUSD struggles with key resistance on BoE “Super Thursday”After taking out the 1.2580 key resistance, GBPUSD bulls jostle with the 78.6% Fibonacci retracement of its March-September 2022 downturn, around 1.2685. That said, the RSI (14) grinds near the overbought territory and the MACD signals are sluggish too, which in turn suggests that the buyers are running out of steam on the Bank of England (BoE) inspired “Super Thursday”. Hence, the Cable buyers need a strong boost from the “Old Lady”, as the BoE is often termed informally, to cross the aforementioned Fibonacci resistance. Following that, a run-up towards the April 2022 low of near 1.2980 and the 1.3000 round figure could act as the final checks for the upside momentum targeting the late March 2022 peak of around 1.3300. On the contrary, a daily closing below the resistance-turned-support of around 1.2580, comprising an upward-sloping trend line from August 2022, could push back the intraday buyers. Even so, the 21-day EMA level of near 1.2510 may act as an additional downside filter before pushing the GBPUSD towards the previous monthly bottom surrounding 1.2275. It’s worth noting that the 61.8% and 50.0% Fibonacci retracement levels, close to 1.2170 and 1.1820 in that order, are the final defenses of the Cable pair buyers. Overall, GBPUSD bulls occupy the driver’s seat on the key day but the upside room appears limited.
by MTradingGlobal