The GBP/USD pair failed yet another attempt to take-out stiff resistances placed near 1.3535 region, now drifting slightly lower towards 1.35 handle.
GBP/USD eyes a test of 1.35 handle?
The spot formed a Doji candle on daily sticks yesterday, suggesting that the investors are in search of a clear direction, as attention now turns towards the UK retail sales and FOMC policy verdict due later on Wednesday.
Markets expect the UK retail sales to drop slightly in August, which could knock-off the pair back towards the key support near 1.3465 region. Meanwhile, a positive surprise could provide the much-needed impetus to the GBP bulls, driving the prices back above 1.3550 levels.
However, any reaction to the UK data is expected to be limited, as the main risk event for the major today remains the FOMC decision and the DOTS plot chart, which will throw fresh light on the US interest rates outlook and further USD moves.
Ahead of the Fed outcome, the US existing home sales data will be also watched alongside the sentiment on the global equities for some trading opportunities.
GBP/USD levels to consider
Haresh Menghani, Analyst at FXStreet writes: “On a sustained move beyond the 1.36 handle, the pair is likely to accelerate the up-move towards 1.3660 level before eventually darting towards the 1.3700 round figure mark. The near-term strong bullish trajectory could further get extended even beyond the 1.3800 handle towards testing 61.8% Fibonacci retracement level hurdle near mid-1.3800s. On the flip side, any weakness below the 1.3500 handle might continue to find some support near 1.3470-65 zone, which is closely followed by the ascending trend-channel resistance break-point, now turned support, near the 1.3440-30 region.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.