GBP/USD Fundamental Forecast – September 27, 2016

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Published: Sep 27, 2016, 02:17 UTC

The GBPUSD pair has been trying very hard to break its way towards 1.2870 but it has been stalled on 3 attempts so far now. One of those attempts was made

GBP/USD Fundamental Forecast – September 27, 2016

The GBPUSD pair has been trying very hard to break its way towards 1.2870 but it has been stalled on 3 attempts so far now. One of those attempts was made last Friday and yesterday, we had 2 more attempts but all of them failed at the support at 1.2910 which has proved to be a tough nut to crack. The more such failed attempts, the more strong will that support region become as traders become more and more confident of the support region and they start putting more and more buys in that price region as their confidence in the support grows. This is very dangerous for bears as the situation slowly starts tilting towards the bulls. But, on the other hand, the bounce from 1.2910 have been shallow so far as the price has not been able to break 1.3000 which should keep the bears still interested and as long as the price stays below 1.3000, we could see the bear revisiting the support and probably try and break the support which could then lead the way towards 1.2870.

It is also important for the bulls that they dont keep this consolidation going on for long as there is always the risk of the buyers losing interest, pulling out their buys and making the support tenuous which means that it could be easily breached the next time. So, it is important for the bulls to regain the 1.3000 handle quickly and make their progress towards 1.3130 region quickly so that they can then attempt to break through and improve their progress through to the 1.34 region within the next few days. Till then, the battle between the bulls and the bears would continue and it could go either way depending on who blinks first. Our view has always been that any move towards 1.2950 or maybe even 1.2870 should be a place to go long or to add to already existing longs.

GBPUSD Hourly

As the Presidential debate begins, GBPUSD sits at 1.2975 having recovered yesterday from its lows of 1.2910. Dont try to make much sense of the moves during and post the debate. They really dont make sense and you cannot gauge much from the debates anyway. So, it is just more of consolidation. Just stick to your plan irrespective of what is said or done during the debate.

About the Author

Colin Firstauthor

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.