GBPUSD Technical Analysis – US Dollar Weakness Prevailing | Forexlive
On the daily chart below for
GBPUSD we can see that the price has been consolidating around the top of the
major range at 1.2444. The red long period moving
average though gave support to the buyers and limited all the sellers’ attempts
to break down.
The US Dollar weakness is
connected with the market expectations that the Fed is done hiking rates and
will begin cutting them before the end of the year. Not even a strong NFP report last Friday could change
the market’s view as the downward spike out of the report was quickly faded.
For now, the buyers are clearly in charge.
On the 4 hour chart below, we can
see more closely the consolidation around the 1.2444 resistance with just one failed probe above
it. The price is now bouncing from the red long period moving average. The
sellers will want to see the price breaking through that moving average to
start piling in and position for a downside move. The risk event to watch is
tomorrow’s US CPI report where higher than
expected data is likely to cause a selloff while lower than expected figures
should lead to another rally in the pair.
On the 1 hour chart below, we can
see that the price bounced from the 4 hour red long period moving average and
the 50% Fibonacci
retracement level. The buyers will need to break above the
swing high at 1.2645 to make a new higher high on this timeframe and keep the
bullish momentum going. The sellers, on the other hand, will need a break below
the 1.26 handle to start piling in and extend the fall to 1.2550.