Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Colin First

The GBP/USD pair looks set to extend the three-day winning streak on Brexit optimism, but a break above the 200-day MA may remain elusive if the equities regain poise and put a bid under the US dollar. The recent Brexit optimism continued underpinning the British Pound on Thursday’s market hours, pushing the GBP/USD pair higher for the fifth trading session in the previous session. This coupled with some heavy US Dollar selling, weighed down by a combination of negative forces, lifted the pair to three-week tops, around mid-1.3200’s. Against the backdrop of a rout in global equity markets, retracing US Treasury bond yields kept the USD bulls on the back-foot through the European trading session and the selling pressure aggravated following the release of softer-than-expected US consumer inflation figures resulting in a weaker USD in broad market which helped British Pound maintain upper hand across yesterday’s market hours.

Know where GBP/USD is headed? Take advantage now with 

75% of retail CFD investors lose money

Disappointing US Macro Data Helped Sterling Bulls Make Headway

As of writing this article, the GBPUSD pair is trading at 1.3234 up by 0.17% on the day. US President Donald Trump’s criticism over the pace of Fed rate hikes, saying that the Fed is too aggressive and that they are making a big mistake, exerted some additional downward pressure on the greenback as well. The pair now seems to have entered a bullish consolidation phase and in absence of any major market moving economic releases from the UK, the pair remains at the mercy of any fresh Brexit-related news/developments. Disappointing US macro data was another key factor which helped GBP gain momentum during overnight trading session. Later during the early North-American session, the US economic docket, featuring the release of Preliminary UOM Consumer Sentiment, will now be looked upon for some short-term trading opportunities.

From a technical perspective, the pair retains its near-term bullish bias. With short-term technical indicators on the daily chart holding in bullish territory, the positive momentum seems more likely to get extended beyond the 1.3270-75 intermediate resistance towards testing the 1.3300 handle, marking 38.2% Fibonacci retracement level of the 1.4377-1.2662 downfall. On the flip side, the 1.3200 handle, closely followed by the 1.3180 region now seems to protect the immediate downside. Any subsequent fall below the mentioned supports might now be seen as an opportunity to initiate fresh long positions and thus, limit the further downside near 100-day SMA support, currently near the 1.3100 handle.


Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.