GBP/USD slips to one-month low, bias bearish [Video]
GBPUSD retraced to an almost one-month low of 1.3640 on Monday after a multi-day battle with the 200-day simple moving average (SMA) and the 1.3840 barrier, where a dashed resistance trendline also happens to be. The pair is currently trying to heal yesterday’s wounds, but downside risks remain intact as the RSI is fluctuating comfortably below its 50 neutral mark, the Stochastics have yet to bullishly cross each other in the oversold area, and the MACD continues to stretch within the negative zone and below its red signal line. Read more...
GBP/USD Forecast: Recovery could end in a screeching halt on a trio of central bank uncertainties
Cable has failed to recapture the broken support line – and that already implies it is set to continue falling. The 1.3730 level provided support twice in recent months and the decisive 90-pip plunge indicates recapturing it will be a struggle.
The safe-haven dollar is taking a breather from gains as investors seem less fearful about the fate of Evergrande, China's second-largest real-estate company. Soothing words from its Chairman and calm from commercial banks – which comment that it is not a "Lehman moment" are behind the improvement in sentiment. This may be short-lived. Read more...
Daily technical and trading outlook – GBP/USD
GBP/USD - 1.3661.. Despite opening higher to 1.3753 in NZ on Mon, the pound retreated to 1.3701 in Asia. Intra-day decline accelerated in Europe on risk-off trade together with cross-selling in stg n tumbled to 1.3740 in NY.
On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven usd's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in late Feb suggests a major low is made. Read more...
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