GBP/USD Price Analysis: Bulls looking to extend the momentum beyond 200-hour SMA
The GBP/USD pair spiked to fresh daily tops, around the 1.2840 region during the early European session, with bulls now looking to build on the momentum beyond 200-hour SMA.
The mentioned area coincides with the 50% Fibonacci level of the 1.3007-1.2676 recent slide. A sustained move beyond will be seen as a fresh trigger for intraday bullish traders follow-through and pave the way for a move back towards the 1.2900 mark.
Meanwhile, RSI (14) on the 1-hourly chart is already flashing overbought conditions. Moreover, technical indicators on the daily chart maintained their bearish bias and are yet to register any meaningful recovery, warranting caution for bulls. Read More...
GBP/USD: Probable consolidation ahead of further losses – UOB
Cable might attempt a consolidative range ahead of potential extra downside in the next weeks, in opinion of FX Strategists at UOB Group.
Key Quotes: 24-hour view: "We highlighted last Friday that ‘momentum indicators are turning ‘neutral and expected GBP to ‘trade sideways within a 1.2700/1.2800 range'. GBP subsequently traded within a wider range than expected (1.2688/1.2805) before closing little changed at 1.2741 (-0.03%). The price action offers no fresh clues and GBP could continue to trade sideways for today, expected to be within a 1.2700/1.2810."
Next 1-3 weeks: "Two days ago (23 Sep, spot at 1.2745), we highlighted that ‘downward momentum has improved considerably and GBP could weaken to further to 1.2650'. GBP subsequently dropped to a low of 1.2676 but it has not been able to make further headways on the downside. Shorter-term momentum is beginning to ease and this could lead to a couple of days of consolidation first. As long as the ‘key resistance' at 1.2830 is not taken out, another down-leg towards 1.2650 is still a distinct possibility." Read More...
GBP/USD eases from one-week tops, still well bid around 1.2875-80 region
The GBP/USD pair surged past the 1.2900 mark and shot to one-week tops during the mid-European session, albeit quickly retreated few pips thereafter.
Having shown some resilience below the very important 200-day SMA, the pair witnessed some aggressive short-covering move on Monday and was supported by a combination of factors. The British pound was supported by the latest optimism that a Brexit deal can be reached.
The UK and European Union are set to resume the ninth and the final round of Brexit talks on Tuesday. Reports indicate that negotiators will begin the process to finalise a deal by the end of this week to hammer out an accord in time for the next EU summit in mid-October. Read More...
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