GBPUSD Daily Forex Analysis
This post is all about today’s analysis of GBPUSD. The GBPUSD Forex Trading Analysis will help the traders to get the ideas of trading this pair.
GBPUSD Short Term Setup
Looking to go long after neckline invalidates, Stops can be placed under the right shoulder the previous higher low or below the head. First target around 1.3178 – 1.3188. Breach above 1.32 with a close would open gates to further gains. If it happens I am guessing we may see 1.3266, maybe even 1.3304 before continuing lower with the bigger trend.
GBPUSD Forex Trading Analysis
GBPUSD keeps gathering upside traction on Wednesday, bouncing off the 1.30 neighbourhood to the current 1.3180/85 band. The pair is gaining 0.56% at 1.3075 and a break above 1.3373 (high Aug.3) would expose 1.3481 (high Jul.15) and finally 1.3535 (high Jun.29). On the other side, the initial support lines up at 1.2954 (low Aug.9) seconded by 1.2849 (low Jul.11) and then 1.2796 (2016 low Jul.6).
GBPUSD Bearish Cypher
The pair has gained over a cent since yesterday’s drop to the mid-1.2900s, following the generalized better tone in the risk associated assets in response to a broad based offered tone in the greenback. Furthermore, GBP seems to have recovered the smile today after five consecutive losses, although the recent dovish tone from the Bank of England keeps limiting potential rallies in spot. Bearish Cypher @ 1.3128 looking for shorts with the recent break of structure
GBPUSD Possible Sell
GBPUSD – monetary policy divergence still the main theme. BOE McCafferty (hawk) suggested prospects of further easing would add fuel to the fire. Break down below 1.3060 was a key development. On the hourly charts, 1.3060-1.31 is a potential selling area. However, interim rally cannot be ruled out before further sell-off. A Pop would be selling opportunity.
GBPUSD Trading Idea
Price stopped at the strong support level 1.3000. On the one hand we have a reversal candlestick pattern and possible RSI confirmation. It’s a signal for opening long trades. But on the other hand, we have confirmation for down movement from MACD and DMI. It’s a signal for short trades. Wait for price reversal and MACD confirmation for long trades, or when price breaks the support level, you will open short trades. Profit targets are 1.3500 and 1.2500 levels.
The BoE’s aggressive easing package should continue to reverberate on the pound. Gilt purchases recommenced this week – albeit with some hiccups – but other measures will only be rolled out in the weeks ahead. Moreover, the MPC has indicated it is ready to cut the bank rate yet further, so easing talk will remain at the fore.