GBP/USD Forecast: Why sterling's upside correction may have a few more hours to run
A Brexit compromise is always good news for the pound – which has been extending its recovery. Prime Minister Boris Johnson has been seeking to soothe concerns about the controversial Internal Markets bill that passed the first hurdle in parliament.
The legislation violates the Brexit deal that Johnson signed with the EU – as admitted by government ministers. Sterling suffered badly when the move was announced and as Brussels laid down an ultimatum to London – rescind the bill by the end of the month or face sanctions. Read More...
GBP/USD outlook: Cable stands at the front foot ahead of Fed
Cable edges higher on Wednesday, looking for another attempt at daily cloud top (1.2944) after the action in past two days was capped by rising cloud top.
The pair holds in green for the third straight day, with series of higher lows pointing to bullish near-term bias.
UK inflation fell to the lowest in almost five years in August, but release had a minor impact on sterling, inflated by weaker dollar and signals that the government might have a way through parliamentary labyrinth for PM Johnson’s bill which breaches existing Brexit agreement.
Daily techs show 14-d momentum rising from deep negative territory and RSI/Stochastic also heading north, but initial bullish signal could be expected only on firm break of daily cloud top, while rise above next pivotal barriers at 1.3000/37 (psychological / Fibo 38.2% of 1.3482/1.2762) is required to generate reversal signal. Read More...
GBP/USD Price Analysis: Refreshes session tops, around the 1.2915 resistance zone
The GBP/USD pair rallied around 35-40 pips during the early European session and refreshed daily tops, around the 1.2915 region in the last hour, albeit lacked follow-through.
The recent recovery from multi-week lows has been along a three-day-old ascending trend-line. The mentioned support coincides with 100-hour SMA and should act as a key pivotal point for short-term traders. Meanwhile, the upside momentum remains capped near the 1.2915-20 horizontal resistance. A convincing breakthrough will be seen as a fresh trigger for bullish traders and pave the way for further near-term gains. Read More...
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