GBPUSD has finally reversed to the upside after the rebound on the 38.2% Fibonacci retracement level of the up leg from 1.1409 to 1.3487 at 1.2693 and the 100-day simple moving average (SMA). However, the downward movement that started at the beginning of September, may not change unless the market manages to crawl substantially above the 1.3000 psychological mark.
The momentum indicators are currently supporting that slightly positive momentum in the very short-term. Specifically, the RSI is picking up speed in the negative territory and the MACD is moving with weak momentum beneath its zero level.
Should the price decisively close above the 23.6% Fibonacci of 1.3000 and the 20- and 40-simple moving averages (SMAs), the bulls could extend the upside move towards the eight-and-a-half-month high of 1.3487. Further advances above this level, could then target the area around the 1.3710 resistance, registered in February 2018.
On the other hand, another decline beneath 1.2693 could meet the 50.0% Fibo of 1.2448. Below that, the pair could reach the 1.2200-1.2250 area, which encapsulates the 61.8% Fibo.
Summarizing, GBPUSD looks positive in the medium-term timeframe following the pullback from the 1.1409 level.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.