GBP/USD: Bulls set on 1.3220
GBP/USD bulls are set on a break to the 1.32 area on a bullish extension following a significant retracement and mean reversion of the prior bullish impulse. Bears might be prudent to wait for a bullish environment.
Latest GBP News
From a technical point of view, the GBP/USD pair has limited bullish potential. The daily chart shows that it is developing above all of its moving averages, which are anyway confined to a tight range with modest bullish slopes. Technical indicators eased within positive levels, and hold around their midlines. The 4-hour chart shows that the pair settled below a bullish 20 SMA and that the Momentum indicator heads firmly lower within negative levels. The RSI indicator is flat within neutral levels, leaving the risk skewed to the downside.
Support levels: 1.3020 1.2970 1.2915
Resistance levels: 1.3060 1.3115 1.3150
UK macroeconomic figures released on Friday were generally encouraging, as the country reported September Retail Sales which came in at 1.5% MoM and 4.7% YoY, beating expectations. Also, the preliminary estimate of October Manufacturing PMI resulted at 53.3, better than expected, while the Services PMI missed expectations but remained within expansion levels, resulting in 52.3.
In the Brexit front, cautious optimism prevails, as the EU and the UK resumed trade talks. News indicating that French President Emmanuel Macron has said to the local fishing industry to brace for impact, somehow indicated that a deal is closer. However, investors are still cautious about the matter. Meanwhile, the resurgent number of coronavirus contagions in the UK pressures authorities, who refuse to impose a new full lockdown. The kingdom won’t publish relevant macroeconomic figures this Monday.
SPECIAL WEEKLY GBPUSD FORECAST
Interested in weekly GBPUSD forecasts? Our experts make weekly updates forecasting the next possible moves of the pound-dollar pair. Here you can find the most recent forecast by our market experts:
Dual Brexit and US fiscal stimulus talks continued to dominate cable's trading, resulting in choppy trading, an eventual breakout to the upside, and a retreat afterward.