šFundamental Analysis
The GBP/USD pair attracted some dip buying on the first day of the new week amid relatively weak trading conditions due to holidays in China and Japan. The spot price is currently trading around the 1.3135-1.3140 region, up more than 0.10% on the day and still near a one-week high hit on Friday amid prevailing US dollar (USD) selling.
The USD Index (DXY), which tracks the greenback against a basket of six currencies, is hovering near its yearly low set in August amid expectations of a more aggressive easing policy from the Federal Reserve (Fed).
In addition, a generally positive risk tone further undermines the greenbackās relative safe-haven status. On the other hand, the British Pound (GBP) benefits from expectations that the Bank of England (BoE) will ease policy less than the Fed next year. However, the market is still betting on more BoE rate cuts, especially after data released last week showed a slowdown in UK wage growth and flat GDP for the second month in a row in July. This could deter bulls from placing strong bets on GBP/USD.
šÆTechnical Analysis
GBPUSD is approaching last week's peak resistance around 1.322. The early Asian session moves pushed the 1.311 support level into a solid session support as the price pushed back. Deeper Fibonacci retracement levels or the key Dow breakout have created two solid support zones for GBPUSD in the uptrend, namely the 1.299 and 1.290 support zones.
ššTrading Signals
SELL GBPUSD 1.321-1.323 Stoploss 1.324
BUY GBPUSD 1.299 -1.297 Stoloss 1.295
The GBP/USD pair attracted some dip buying on the first day of the new week amid relatively weak trading conditions due to holidays in China and Japan. The spot price is currently trading around the 1.3135-1.3140 region, up more than 0.10% on the day and still near a one-week high hit on Friday amid prevailing US dollar (USD) selling.
The USD Index (DXY), which tracks the greenback against a basket of six currencies, is hovering near its yearly low set in August amid expectations of a more aggressive easing policy from the Federal Reserve (Fed).
In addition, a generally positive risk tone further undermines the greenbackās relative safe-haven status. On the other hand, the British Pound (GBP) benefits from expectations that the Bank of England (BoE) will ease policy less than the Fed next year. However, the market is still betting on more BoE rate cuts, especially after data released last week showed a slowdown in UK wage growth and flat GDP for the second month in a row in July. This could deter bulls from placing strong bets on GBP/USD.
šÆTechnical Analysis
GBPUSD is approaching last week's peak resistance around 1.322. The early Asian session moves pushed the 1.311 support level into a solid session support as the price pushed back. Deeper Fibonacci retracement levels or the key Dow breakout have created two solid support zones for GBPUSD in the uptrend, namely the 1.299 and 1.290 support zones.
ššTrading Signals
SELL GBPUSD 1.321-1.323 Stoploss 1.324
BUY GBPUSD 1.299 -1.297 Stoloss 1.295
Note
GBP/USD rallies on Fed rate cut betsGBP/USD clipped into the high end on a quiet Monday, kicking off the new trading week with a fresh bullish bid back over the 1.3200 handle. Investor sentiment is holding steady on the high side as markets gear up for a hefty central bank showing this week, with a widely anticipated Fed rate cut and another showing from the Bank of England
JOIN OUR FREE TELEGRAM GROUP t.me/+7rqP7ECMjpUxMzBl
MESSAGE US FOR VIP SIGNALSš t.me/Leilani8597
MESSAGE US FOR VIP SIGNALSš t.me/Leilani8597
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
JOIN OUR FREE TELEGRAM GROUP t.me/+7rqP7ECMjpUxMzBl
MESSAGE US FOR VIP SIGNALSš t.me/Leilani8597
MESSAGE US FOR VIP SIGNALSš t.me/Leilani8597
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.