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U.S. Dollar / Pound Sterling

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USDGBP trade ideas

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
GBP/USD Breakout Anticipation Near Resistance 1.33553GBP/USD is on the verge of a dramatic breakout! Currently trading around 1.32760, it's hovering just below the critical resistance level of 1.33553. If GBP/USD fails to break through this resistance, it may retreat to the support level of 1.32396 – a moment where the market holds its breath, awaiting decisions from the Fed and the Bank of England. Alternatively, the next target could be the high of 1.33893 – where investors are eagerly hoping for a leap forward. The game is heating up by the minute, and any news from these meetings could be the 'trigger' for significant volatility! Investors should stay vigilant as the market is about to enter a high-stakes scenario full of surprises!
Long
by Romio_pro
GBPUSD: Post-FOMC optimism stays intact despite pre-BoE retreatGBPUSD consolidates Fed-induced gains as traders await monetary policy announcements from the Bank of England (BoE). That said, the Cable pair reached a fresh 30-month high after the US Federal Reserve’s (Fed) 0.50% rate cut that drowned the US Dollar across the board. Buyers stay optimist Although the Pound Sterling struggles to hold at a 2.5-month high, not to forget its failure to provide sustained breakout of a month-old horizontal resistance, the quote defends the mid-month breakout of a descending resistance line from late August, now support. Also keeping buyers hopeful is the pair’s recent rebound from the 100-SMA and steady RSI conditions. It’s worth noting, however, that the bearish MACD signals and a likely status-quo of the BoE could join the key upside hurdle to challenge the bulls. Technical levels to watch For GBPUSD buyers, the immediate resistance to watch is a month-old range between 1.3230 and 1.3240 if the BoE sounds hawkish. After that, the focus will shift to the 1.3300 level. If the Cable price stays above 1.3300, the 50% and 61.8% Fibonacci Extension (FE) levels around 1.3305 and 1.3375 could attract buyers. On the flip side, GBPUSD sellers need a clear break below the 1.3150-45 support zone, which includes the 100-SMA and a month-old previous resistance line, to weaken buyer’s confidence. If they succeed, the next tests will be the 1.3100 level and the 200-SMA at 1.3025, as well as the key psychological level of 1.3000. Upward bias seems favorable Whether due to an expected hawkish pause from the BoE or the market's response to the Fed's dovish surprise, along with GBPUSD trading above the 1.3150-45 resistance-turned-support, the pair is likely to stay bullish unless the UK central bank surprises traders.
by MTradingGlobal
GBP/USD Faces Risk of Correction After Short-Term PeakGBP/USD is currently trading around 1.32206 after reaching a short-term peak at 1.32653. The main support level is at 1.31958, and if this level is not maintained, the price may correct to lower levels around 1.32232. The EMA 34 (1.31474) and EMA 89 (1.31174) still indicate a short-term uptrend, but selling pressure is also starting to form. Economic news from the UK and the US will be the key factors influencing the next move of this currency pair.
by Romio_pro
GBPUSD Faces Resistance at 1.32112 USD, Awaiting CorrectionCurrently, GBPUSD is trading around 1.31552 USD after breaking out of the descending price channel. The key resistance at 1.32112 USD presents a significant challenge for the upward trend. The EMA 34 and EMA 89 lines indicate that the short-term upward trend remains intact, though a correction may occur as the price reaches this resistance level. Upon hitting this resistance, the price may pull back to 1.31537. Investors are awaiting the upcoming Fed meeting and key economic data from the UK, both of which will significantly impact the future trend of GBPUSD.
Long
by Romio_pro
2
GBPUSD: Sellers need confirmation from 1.3050 and UK/US dataGBP/USD remains flat at its lowest level in three weeks, ending a two-day losing streak. As traders await crucial economic data from the UK and the US, the Pound Sterling is testing a resistance level from late December 2023, which is now providing immediate support. GBPUSD bears flex muscles… Despite a long-standing resistance-turned-support line and upcoming data challenges, recent technical signals suggest further declines. Monday’s close below the 20-day moving average (SMA) and bearish MACD signals indicate potential further downside. Additionally, the Relative Strength Index (RSI) is not yet oversold, keeping sellers hopeful. Technical levels to watch… Firstly, the resistance-turned-support line surrounding 1.3050 restricts the GBPUSD pair’s immediate downside. Following that, the quote’s quick decline to the 1.3000 psychological magnet can’t be ruled out. However, March’s peak of around 1.2890 and the 1.2800 round figure will precede the 200-SMA level of 1.2720 to challenge the Cable bears afterward. For buyers, a positive shift in UK data and a daily close above the 20-SMA at 1.3090 are needed to consider entering. Even so, a slew of resistances near 1.3150 and 1.3180 could test the pair’s following advances ahead of directing the bulls toward the recent peak surrounding 1.3265 and then to the 1.3300 threshold. Consolidation expected… Overall, the GBP/USD may see further declines if the economic data from the UK remains weak and US inflation data improves, unless the upcoming reports provide an unexpected boost.
by MTradingGlobal
GBPUSD: Resistance at 1.32225, Strong Support at 1.30969The chart shows GBPUSD facing strong resistance at 1.32225, tested multiple times but not yet broken, as indicated by the red arrows. Both EMA 34 and EMA 89 confirm that the long-term uptrend remains intact, despite the price temporarily correcting towards the support zone. The two key support levels are Support 1 at 1.30969 and Support 2 at 1.31182, with price responding well, showing strong buying pressure. GBPUSD is likely to fluctuate within the range of 1.3050 - 1.3250 before a clearer trend emerges. If it breaks above the 1.32225 resistance, the pair could continue to rise. The slight decrease in the UK's GDP may put short-term pressure on the GBP. However, the Bank of England (BoE) potentially raising interest rates adds uncertainty and volatility to the GBPUSD pair.
Long
by Romio_pro