Bottom line: GBPUSD bullish structure remains intact until prices stay above the 1.1414 mark going forward. The engulfing bullish chart pattern still holds, as traders prepare to target above 1.3200/1.3500 levels respectively.
Fundamental Outlook:
GBPUSD may find an uptick this week as the UK begins to re-open. UK Prime Minister Boris Johnson had laid out steps towards easing the lock down yesterday allowing manufacturing and construction work to resume. As economies re-open (US, UK and European Countries) Crude Oil demand is expected to surge again sending prices higher going forward.
FTSE had rallied last week by around 3% along with other global indices. Today, as we write the article the indice is up 1.5% trading around 5969 mark. The indices might be pinning hopes over post lock down as economies re-open in the US and Europe. Also, the easing US-China trade war fears might be reason behind the optimism. As IMF forecasts an inevitable drop (-3%) in Global GDP figures in 2020, it remains to be seen how long the rally could continue.
EURUSD had come under pressure last week and has dropped below the 1.0800 mark before seeing some buying around 1.0765. The Euro zone could be facing an economic contraction by over 7% in 2020, due to COVID-19 pandemic. The EURO would be taking cues from GDP Growth Rate figures to be out this week (Friday).
Technical Analysis:
GBPUSD bulls seem to be back in control after printing lows around 1.2266 levels last week. It is trading back above 1.2400 mark as we write this article and bulls remain poised to push towards 1.3200 resistance as their next target.
GBPUSD has been printing higher highs and higher lows since 1.1414 lows. Since 1.2485 highs, the currency has remained sideways and might have completed a triangle structure at 1.2266 levels last week. Ideally, we could see prices pushing higher towards 1.3200 and 1.3500 levels respectively.
Traders might be preparing to take profits on long positions initiated earlier around the 1.3200 mark. GBPUSD is then expected to produce a meaningful corrective drop, providing yet another opportunity to initiate longs.
Prepared by
Harsh Japee, Technical Analyst.
GBPUSD Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
