GBP/USD Technical Analysis – Consolidate Around 1.30

The Pound vs US Dollar major pair exchange rate is building support around the 1.30 round mark. The Pound has seen plenty of whipsaw trading the past few months, but has nevertheless been able to add value. The US Dollar promptly reversed on poor inflation data on Friday, which continued to underscore the Federal Reserve’s rhetoric that inflation has not returned to standardized norms.

The pair is testing the inverted Head and Shoulder breakout which occurred exactly a month ago on July 14^th, 2017. Market participants and technical traders usually attempting to play a rebound buy upon recognizing strong breakout retest in order to join the major trend at “smart” entry point.

Notice that, tomorrow at 08:30, the UK inflation data will come out and will serve as major Catalyst for the pair price action.

It is nice to know that

The GBP/USD major currency pair has gained the Forex market nickname “Cable”, named after the Transatlantic Cable that was laid under the ocean and transmitted the GBP/USD exchange rate between the US and the UK in the sixties of the 19^th century. It refers both to the exchange rate of the Grate British Pound priced in US dollars and/or the Grate British Pound (GBP) as a stand-alone currency.

According to the Triennial Central Bank, Monetary of Economic Department Foreign exchange turnover survey in April 2016, the global FX markets average turnover stood at $5.1 trillion per day.

The US dollar is the world’s most traded currency. In 2016, it was on one side of 88%, up from 87% in 2013, of the global Forex trades.

The Pound Sterling market share in 2016 was 12.8%, up from 11.8%, no’ 4 after the Japanese Yen.

The Pound Sterling versus the U.S Dollar, is the third most traded currency pair in the world after the EUR/USD and the USD/JPY, with $470 billion a day in average as of April 2016, reflecting 9.3% of the Over the Counter Forex market turnover by currency pair.

Yaron Mazor is a senior analyst at SuperTraderTV.

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