GBP/USD gets trendline rejection, but bulls still in play [Video]

Christina Parthenidou XM

GBPUSD turned red on Monday after marking a one-month high of 1.2598 near the long-term resistance trendline, which has been capping bullish actions since the June 2021 high.

The pair switched back to recovery mode early on Tuesday, with the technical indicators reflecting appetite for a bullish breakout. The RSI is trending higher and is above its 50 neutral mark, while the MACD is gradually strengthening within the positive region and above its red signal line. The fact that the price has avoided a drop inside the Ichimoku cloud is also making additional gains possible.

Yet, only a clear extension above the resistance trendline and the 1.2600 round level could activate fresh buying orders. If that proves to be the case, the bulls may drive the pair straight up to May’s high of 1.2678 and then towards the broken support trendline from the September 2022 low at 1.2730. A continuation higher could pick up pace towards the 1.3000 zone, where the 61.8% Fibonacci retracement of the 1.4248-1.0324 downtrend is placed.

Alternatively, the pair could seek support somewhere between its 20- and 50-day simple moving averages (SMAs) at 1.2465. Failure to rebound there may press the price into the 1.2300-1.2240 territory, where May’s bearish wave bottomed out. The 50% Fibonacci mark and the cloud’s lower boundary are also positioned in the same region. Therefore, a decisive close lower could spark a notable decline towards the 200-day SMA at 1.2020.

All in all, GBPUSD seems to have some extra bullish power in the tank despite a discouraging start to the week. An advance above 1.2600 could extend the uptrend to new highs.

Author

Christina Parthenidou

Christina joined Trading Point in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

GBP/USD edges lower but remains close to multi-month top, awaiting US PCE

The GBP/USD pair trades with a negative bias below mid-1.3600s during the Asian session, eroding a part of the previous day's strong gains. Spot prices, however, remain within striking distance of a six-month top, set last Friday, as traders keenly await the release of the US Personal Consumption Expenditures (PCE) Price Index data for a fresh impetus.

EUR/USD Remains sideways ahead of key US events

EUR/USD clinches humble gains around 1.1670 following Tuesday’s close on Wall Street. Indeed, marginal losses in the US Dollar encourages spot to set aside two dauly pullbacks in a row and maintain the 1.1700 barrier on the cross-hairs for now. Moving forward, US inflation tracked by the PCE and another revision of Q2 GDP data should keep investors entertained on Wednesday.

Gold trades with negative bias below $4,650 as USD edges higher ahead of US PCE

Gold attracts fresh sellers following the previous day's two-way price swings, and trades below $4,650. The US Dollar regains positive traction amid some repositioning ahead of the release of the US Personal Consumption Expenditures Price Index and is seen as undermining the commodity. The crucial US inflation data, along with Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole Symposium on Friday, might offer more cues over the interest rate path.

Dogecoin, Shiba Inu, Pepe: Profit-taking cools last week’s rally

Meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), are losing their bullish momentum after last week’s double-digit gains. Facing downside pressure amid profit-taking, DOGE and PEPE risk further decline while SHIB holds at a support level.

America’s self‑inflicted trade wound

I’m conflicted about the trade war that the U.S. has started with Canada. Let’s be clear: any representation that Canada has been taking unfair advantage of the U.S. or that they have been treating us badly for years is a bogus characterization. In reality, the shoe is on the other foot. It’s the U.S. that has been behaving badly.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.