GBP/USD pulls back towards 38.2% fibonacci; bullish in medium term [Video]
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. Read More...
GBP/USD Forecast: Not out of the woods yet, focus remains on Brexit talks/US presidential debate
The GBP/USD pair witnessed some aggressive short-covering move on the first day of a new trading week and was being supported by a combination of factors. The British pound's strong outperformance was fueled by the optimism over a breakthrough in this week's Brexit trade negotiations. Reports indicated that the two sides remain optimistic that some kind of a deal will be struck before the very important EU summit in mid-October. The UK PM spokesman reinforced market expectations and said that a Brexit agreement was still possible. The spokesman, however, added that there are significant gaps and the EU must adopt a more realistic policy position.
The sterling got an additional boost after the Bank of England (BoE) policymaker, Dave Ramsden, downplayed the possibility of negative interest rates in the short-term. In an interview with the Society of Profession Economists, Ramsden was noted saying that he still sees the effective lower bound in the bank rate at 0.10%. He further said that the central case sees GDP recovering steadily but there are real uncertainties and risks from the pandemic, Brexit and the US election. Read More...
GBP/USD outlook: Continuation of EU/UK trade talks is key event for sterling today
Cable remains constructive in early Tuesday’s trading, following positive close on Monday, although with daily candle with long upper shadow that points to upside rejection.
Fresh recovery that emerged after bear-trap under 200DMA, cracked initial barrier at 1.2865 (Fibo 23.6% of 1.3482/1.2675), but is lacking momentum that keeps in play risk of stall.
Recovery needs close above 10 DMA (1.2830) and Fibo 23.6% barrier (1.2865) for initial bullish signal, but confirmation of reversal would require extension above pivotal barriers at 1.2983/1.3000 (Fibo 38.2% of 1.3482/1.2675 / psychological).
Conversely, repeated failure to register daily close above 10DMA would keep the downside vulnerable and risk fresh attack at key 1.2759/04 support zone (base of rising daily cloud / 200DMA / Fibo 38.2% of 1.1446/1.3482), loss of which would open way for deeper correction of Mar/Aug 1.1446/1.3482 rally. Read More...
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