GBP/USD outlook: Signals of an end of extended directionless mode still require a confirmation

Cable is holding within a narrow consolidation in European trading on Wednesday, following Tuesday’s 0.64% drop, which generated an initial signal of an end of a multi-day directionless mode. Fresh weakness touched strong supports at 1.2170 zone (50% retracement of 1.1933/1.2406/lows of June 22/23), but so far lacking strength for a clear break, which would confirm bearish signal and shift near-term focus lower.

Daily technical picture is bearish with strong negative momentum and MA’s in bearish setup, keeping near-term bias with bears, as sterling is weighed by month-end dollar buying. However, risk of extended range-trading is expected to persist as long as the price action stays above 1.2170 zone pivots, but the downside will remain vulnerable while daily Kijun-sen (1.2300) caps. Read more ...

GBPUSD

GBP/USD scaled-in short trade added

The GBP/USD is in a short trend. Megatrend moving averages are bearish and we can also spot daily bearish candles along with H4 bearish rejections. The ongoing problem in the UK with Scotland can also weigh on the price. Currently 1.2160 is strong support and intraday break of that level should move the price lower. W L5 is 1.2108 and the ATR projection is 1.2050. However, if the market doesn’t hold below 1.2183 we might see 1.2230 again and that would endanger the bearish trend on the GBP/USD. I am selling the rallies and two short positions are there for a continuational move down. Read more ...

GBPUSD

GBP/USD struggles near two-week low, just above mid-1.2100s ahead of central bank speakers

The GBP/USD pair prolonged this week's retracement slide from the 1.2330-1.2335 region and edged lower for the third successive day on Wednesday. The downward trajectory dragged spot prices to a nearly two-week low, closer to mid-1.2100s during the first part of the European session, though lacked follow-through selling.

The market sentiment remains fragile amid concerns that a more aggressive move by major central banks to curb soaring inflation would pose challenges to global economic growth. This assisted the US dollar to capitalize on the previous day's strong move up and gain some follow-through traction, which, in turn, exerted some downward pressure on the GBP/USD pair. Read more ...

GBP/USD

Overview
Today last price 1.2155
Today Daily Change -0.0028
Today Daily Change % -0.23
Today daily open 1.2183
 
Trends
Daily SMA20 1.2335
Daily SMA50 1.245
Daily SMA100 1.2845
Daily SMA200 1.3177
 
Levels
Previous Daily High 1.2292
Previous Daily Low 1.2181
Previous Weekly High 1.2324
Previous Weekly Low 1.2161
Previous Monthly High 1.2667
Previous Monthly Low 1.2155
Daily Fibonacci 38.2% 1.2223
Daily Fibonacci 61.8% 1.2249
Daily Pivot Point S1 1.2145
Daily Pivot Point S2 1.2107
Daily Pivot Point S3 1.2034
Daily Pivot Point R1 1.2257
Daily Pivot Point R2 1.233
Daily Pivot Point R3 1.2368

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD losses momentum and trades around 0.6950

AUD/USD losses momentum and trades around 0.6950

AUD/USD eased in the American session to settle at the lower end of its Tuesday range. Lingering Chinese and US inflation figures sent investors to the sidelines. Eyes on equities and government bond yields.

AUD/USD News

EURUSD returns 1.0200 as the market mood sours

EURUSD returns 1.0200 as the market mood sours

The EUR/USD pair is battling to hold above the 1.0200 mark, undermined by a souring market mood. The European energy crisis adds to the poor performance of the shared currency.

EUR/USD News

Gold bulls to challenge $1,800 ahead of US inflation figures

Gold bulls to challenge $1,800 ahead of US inflation figures

Gold kept rallying on Tuesday, hitting a fresh one-month high. The greenback remained weak throughout the first half of the day, recovering some ground after Wall Street’s opening amid the poor tone of US indexes.

Gold News

Iran adopts crypto in foreign trade, debuts with $10 million import order

Iran adopts crypto in foreign trade, debuts with $10 million import order

In a watershed moment for crypto adoption, Iran registered its first official order for importing $10M worth of goods paid for in cryptocurrencies. A private Iranian news agency reported that the Ministry of Industry, Mine and Trade has plans to widely use cryptos in foreign trade.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures