Pound Sterling Price News and Forecast: GBP/USD's bears retain control
|GBP/USD Price Analysis: Bulls need validation to keep bounces off key support confluence
GBP/USD extends recovery moves from 1.2710 towards attacking 1.2750, currently near intraday high of 1.2745, as markets in Tokyo open for Wednesday’s trading. The cable dropped to the lowest since July 23 the previous day but a confluence of the key SMAs and 61.8% Fibonacci retracement of its late-June to the early-September upside barred sellers afterward.
However, bearish MACD requires the buyers to cross the September 11 bottom of 1.2762 to extend the latest U-turn. In doing so, the 1.2800 threshold could become their next choice.
In a case where GBP/USD remains strong beyond 1.2800, the 50% Fibonacci retracement level of 1.2865 can probe the bulls ahead of directing them to September 16 peak surrounding the 1.3000 psychological magnet.
GBP/USD Forecast: Brexit, BOE and new restrictive measures in the UK
The GBP/USD pair edged sharply lower for a third consecutive day, trading as low as 1.2709, its lowest level since last July. The pair seesawed between gains and losses, hitting an intraday high of 1.2866 after BOE’s Governor Bailey said that mention of negative rates does not imply their use. Additionally, EU’s Barnier headed to London for informal trade talks, as Brexit negotiations are reportedly going “a bit” better. The pair started retreating after UK PM Johnson announced new coronavirus-related restrictions, which could last for up to six months. However, he said that this was “by no means a return to the full lockdown of March,” as the aim was to cause the minimum damage to lives and livelihood.
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.