Bottom line: GBPUSD long term structure continues to remain bullish against 1.1414 lows print in March 2020. Over the short term though, the currency might have carved a meaningful top around 1.3500 handle and might push towards 1.2200 levels.
Fundamental Outlook:
EURUSD has been trading in a range between 1.1730/50 and 1.1910/20 since last few sessions. The exchange rate risen to 1.2010 levels early this month and might come under renewed selling pressure around 1.1930/50 mark in the near term. If global indices manage to rally in the near term, it could boost the risk associated exchange rate as well, pushing through 1.1950/60 handle.
FTSE had dropped by -0.81% on Friday, closing around 6000 mark. Global indices closed in the red with Dow Jones down (-0.88%), SPX500 (-1.12%) and DAX (-0.70%) respectively. FTSE futures trade marginally low at 5988 as we prepare to publish. Investor sentiment continues to remain vulnerable over Brexit uncertainties and further lockdowns over COVID-19 infections.
GBPUSD has dropped sharply from close to 1.3500 highs on September 01, 2020. The exchange rate trades around 1.2960 as we prepare to publish. It might face further selling pressure towards 1.3200/1.3300 levels over the next few trading sessions, if US Dollar continues to gain. Brexit uncertainties would only add more pressure.
Technical Analysis:
GBPUSD continues to remain in control of bears after hitting major resistance just below the 1.3500 handle early this month. The currency had dropped through 1.2760 lows over the last week before pulling back. Bears might remain poised to resume lower from 1.3200/50 levels going forward.
GBPUSD managed to carve a religious uptrend (higher highs and higher lows) since 1.1414 lows through 1.3483 highs respectively. Also note that a major past resistance at 1.3516 was almost taken out before reversing sharply lower. This might call for a meaningful corrective drop towards 1.2200.
Further, also note that fibonacci 0.618 retracement of the entire rally between 1.1414 and 1.3483 is seen through 1.2200 levels. Hence probabilities would remain high for a bullish bounce, if prices managed to drop through that mark.
Most traders might be preparing to initiate fresh short positions around 1.3200/1.3300 resistance zone, with a protective stop above 1.3500 and projected target towards 1.2200 respectively. Bulls might prepare to be back in control around those levels.
Prepared by
Harsh Japee, Technical Analyst.
GBPUSD Chart
Disclaimer:
“This market commentary and analysis has been prepared for AT Global Markets UK Ltd (ATFX UK) by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such.
You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.
Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients.
The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.”
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。
