GBP/USD: Bulls need above 1.3000 to really push ahead once more [Video]
As with EUR/USD there has been a mild tick higher on Cable as the strength of the dollar rally has just eased in the past 24 hours. However, this is likely to be another chance to sell as the growing medium term pressure on 1.2650 support builds. The trend lower of the past three weeks comes in around 1.2825 today and there is a near term pivot around 1.2860 which we see will likely contain a rally before downside pressure renews. Momentum indicators are far more negatively configured on a medium term outlook now, but are just beginning to tick back higher again. This near term rebound should be seen as a chance to sell. We expect this week’s low of 1.2670 to come under further pressure and how the market reacts around 1.2650 (which is a breakout support band of old highs) will determine whether this move goes much deeper towards 1.2480 and possibly 1.2250 in due course. Read More...
GBP/USD Analysis: Struggles to register any meaningful recovery, bearish bias remains
The GBP/USD pair gained some traction on Friday and climbed to three-day tops, around the 1.2805 region during the early European session. The British pound stabilized a bit after the UK Chancellor Rishi Sunak announced the new Job Support Scheme, which will replace the furlough scheme and cover two-thirds of the lost wages. Sunak said that it was part of a wider winter economy plan and aimed to support workers hit by a resurgent COVID-19 pandemic.
Apart from this, a modest recovery in the global risk sentiment undermined the US dollar's safe-haven status and remained supportive of the uptick for the second straight day. Reports indicated that Democrats in the US House of Representatives are working on a $2.2 trillion coronavirus stimulus package. Renewed hopes of additional US fiscal stimulus measures boosted investors' confidence and led to a modest recovery in the equity markets. Read More...
GBP/USD outlook: Recovery extension cracks pivotal Fibo barrier
Cable extends recovery from Wednesday’s two-month low (1.2675) after bears got trapped under 200DMA (1.2719) and ahead pivotal Fibo support at 1.2690 (38.2% of 1.1409/1.3482 rally).
Fresh advance also points to false break below the base of rising daily cloud (1.2759), with signal to be confirmed on weekly close within the cloud.
Rising momentum, reversal of daily stochastic from oversold zone and formation of 100/200DMA’s golden cross, support the action.
Recovery cracked initial barrier at 1.2801 (Fibo 38.2% of 1.3007/1.2675), ahead of sideways-moving 10DMA (1.2839) violation of which would open way for stronger correction. Read More...
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