GBPUSD: Is It Time to go Long?

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Detailed analysis of GBP/USD:

Recent Performance: GBP/USD has shown a significant rebound, surpassing the 1.2700 level after touching its lowest point in two weeks below 1.2670 on Tuesday. This movement suggests a certain degree of short-term resilience, but the future direction remains uncertain.

Investor Sentiment: Investors appear to remain cautious about taking significant positions ahead of the Federal Reserve (Fed) and Bank of England (BoE) policy meetings. This caution may make it difficult for the pair to gather directional momentum.

Technical Indicators: The Relative Strength Index (RSI) indicator on the 4-hour chart suggests that the pair may be nearing technically overbought territory, remaining slightly below the critical level of 30. This suggests the possibility of a technical correction in the future, as evidenced by previous instances of technical correction when the RSI fell into the 30 area on the 4-hour chart.

Key Levels: In the event of an upward correction, the Fibonacci retracement level at 50% of the recent uptrend could act as the first resistance near 1.2710, followed by the 100-period Simple Moving Average (SMA) at 1.2730 and 1.2750. On the downside, key support levels include 1.2670 (200-period SMA), 1.2620 (61.8% Fibonacci retracement level), and 1.2600 (static level).

Macroeconomic Context: The US dollar remains strong on a broad scale, influenced by the yield of the benchmark US ten-year Treasury note, which remains above 4.3%. This supports the US dollar and could continue to weigh on the GBP/USD pair.

Potential Impacts: Safe-haven flows could dominate financial markets, maintaining the strength of the US dollar and pushing GBP/USD lower. In the absence of high-level data releases from the United States, investors may primarily react to changes in short-term risk perception.

Future Events: Ahead of the Fed and BoE policy decisions, the UK's Office for National Statistics will release Consumer Price Index (CPI) data for February on Wednesday morning. An expected annual CPI inflation decrease to 3.6% could further influence market perception regarding BoE monetary policy and thus affect GBP/USD.

In summary, GBP/USD shows a bullish restart with a target of 1.29 after the cross on the uptrend line and the identified daily FVG, a perfect combo.
註釋
Waiting for the good opportunity to go long after the BOE, the retest of the FVG and Trendline.
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註釋
GBPUSD Is ready to go short after the break of the demand zone and the bullish trendline. Soon new analysis will be release
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