GBP/USD outlook: Cable rises to new 14-month high on hawkish rate outlook /weak Dollar
|GBP/USD
Cable is riding on extended third wave of five-wave cycle from 1.2307 (May 25 higher low) which hit Fibonacci extension 200% on Friday.
Steep upleg from 1.2486 (June 12 trough) extends into fourth consecutive day, hitting new 14-month high (1.2848), as sterling was lifted by weak dollar and hawkish signals from the Bank of England.
BOE MPC meets next week (June 22) and expected to deliver another rate hike (13th consecutive), on track to further diverge from the Fed, which paused rate hikes cycle for the first time in over one year and showed less hawkish expectations in the coming months.
Overbought daily studies warn that recent sharp bullish acceleration may lose steam and enter consolidation before pushing through immediate barrier at 1.2875 (200WMA) towards targets at 1.2946/1.3000 (Fibo 76.4% of 1.3748/1.0348 / psychological).
Dips should find solid support at 1.2679 (previous top of May 10, also the length of corrective wave 2).
Res: 1.2848; 1.2875; 1.2946; 1.3000.
Sup: 1.2768; 1.2679; 1.2583; 1.2540.
Interested in GBP/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.