GBP/USD Forecast: short term bullish on dollar's weakness

Valeria Bednarik FXStreet

Broad dollar's weakness has helped the GBP/USD pair recover the 1.2300 level this Thursday, after trading as low as 1.2252 early Asia. There are no relevant macroeconomic figures scheduled in the UK for today with market's attention centered in the upcoming ECB meeting and how it could affect the greenback. The American currency has failed to rally even after FED's head, Janet Yellen, pledged to raise rates a few times per year until reaching 3.0% by the end of 2019.

The long term perspective for the GBP/USD is bearish, given the uncertainty behind the upcoming Brexit, but that won't prevent the pair from rising on dollar's weakness. Now trading below the critical 1.2330 price zone, the 4 hours chart shows that the price is well above a bullish 20 SMA, while technical indicators maintain their bullish slopes well into positive territory.

Beyond the mentioned resistance, the rally can extend up to 1.2370, whilst beyond this last, the weekly high of 1.2415 level comes next. Gains beyond this last are possible, but unlikely to hold, as selling at higher levels is still the way to play the Pound.

Supports today are at 1.2290 and the daily low at 1.2250, with a break below this last exposing the 1.2200 figure.

View live chart of the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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