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 ...
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 ...
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 ...
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