GBP/USD Outlook: Dovish Fed and positive expectations from BOE keep strong bullish tone
|Cable is holding near one-week high at 1.2725, posted on strong post-Fed bullish acceleration, as weak UK retail sales data (May m/m -0.5% vs -0.1% prev/y/y 2.3% vs 5.1% prev) had mild impact on bulls.
Dovish Fed axed the greenback, while more positive tones which diminish fears of no-deal Brexit, further improved the outlook.
Bulls broke above falling 30SMA (1.2705), the last obstacle on the way to key barriers at 1.2763 (double-top/Fibo 38.2% of 1.3179/1.2505 fall), violation of which is expected to generate stronger bullish signal.
BOE MPC meeting is the key event for pound today, with traders expecting the central bank to reiterate its message of interest rate hike, despite Fed's strong dovish stance that further improves the sentiment.
Sterling advanced nearly 1.5% in three days on bounce from new low at 1.2505 (18 June), with sustained break of 1.2763 pivot to spark extension of recovery from 1.2505 and expose targets at 1.2842 (50% retracement of 1.3179/1.2505) and 1.2872 (weekly cloud base).
Converged 10/20SMA's offers solid support at 1.2658/54, which needs to hold and maintain bullish bias.
Res: 1.2725; 1.2763; 1.2810; 1.2842
Sup: 1.2654; 1.2631; 1.2606; 1.2559
Interested in GBPUSD 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.