After breaking a three-day downtrend, the GBPUSD is maintaining its rebound from the previous day at 1.27488.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• GBP/USD holds onto the previous day’s recovery moves after snapping three-day downtrend.

The pair currently trades last at 1.27488.

The previous day high was 1.2749 while the previous day low was 1.2688. The daily 38.2% Fib levels comes at 1.2711, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2726, expected to provide support.

GBP/USD defends the previous day’s notable rebound, as well as the first daily gains in four, as it makes rounds to 1.2750 during early Wednesday morning in Asia. In doing so, the Cable pair portrays the typical pre-event anxiety ahead of the scheduled speeches from the top-tier central bankers at the European Central Bank (ECB) Forum in Sintara.

On Tuesday, the market’s optimism surrounding the global economic recovery, backed by China, joined hawkish comments from Bank of England (BoE) Policymaker Swati Dhingra to underpin the GBP/USD pair’s run-up despite strong US data.

BoE’s Dhingra said on Tuesday, “There are some promising signals that UK CPI should ease, based on big fall in producer price inflation,” per Reuters.

On the other hand, a slew of the US data allowed the US Dollar to pare intraday losses during late Tuesday but failed to reverse the daily loss of the greenback amid optimism. That said, US Durable Goods Orders marked a surprise growth of 1.7% for May versus -1.0% market forecasts and 1.2% prior (revised). Further, the US Conference Board’s (CB) Consumer Confidence Index rose to 109.7 for June from 102.5 in May (revised from 102.3). On the same line, US Housing Price Index rose to 0.7% in April from 0.5% in previous readings (revised), versus 0.3% expected. Meanwhile, the S&P/Case-Shiller Home Price Index came in as -1.7% YoY for April, down from -1.1% prior but better than -2.6% market forecasts. Additionally, New Home Sales rose 12.2% MoM in May from 3.5% prior and 0.5% anticipated whereas the Richmond Fed Manufacturing Index improved to -7.0 in June compared to -15.0 prior and -10.0 expected.

Elsewhere, headlines suggesting Asian lobbyists are advocating for easier rules for Chinese equities’ overseas listing and comments from Premier Li Qiang joined the People’s Bank of China’s (PBoC) lower-than-expected fixing of the USD/CNY price to favor the optimism. Further, the US Dollar selling by major Chinese state banks, per Reuters, also allowed the GBP/USD pair to remain firmer.

Against this backdrop, Wall Street closed with notable gains for the first time in three days while the US Treasury bond yields recovered.

Moving on, market players may witness further weakening of the US Dollar despite the recently firmer US data favoring the Fed rate hike expectations, amid the economic optimism. However, the cautious mood ahead of speeches from BoE Governor Andrew Bailey and Federal Reserve Chairman Jerome Powell at the ECB Forum in Sintra could prod the Pound Sterling bulls.

GBP/USD pair’s U-turn from the previous monthly high of 1.2680 joins the sustained run-up beyond the 10-day Exponential Moving Average (EMA), at 1.2720 now, to keep the Cable buyers hopeful of witnessing further upside.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.275 at the time of writing. Pair opened at 1.2713 and is trading with a change of 0.29% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2608, 50 SMA 1.253, 100 SMA @ 1.2355 and 200 SMA @ 1.2082.

The previous day high was 1.2749 while the previous day low was 1.2688. The daily 38.2% Fib levels comes at 1.2711, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2726, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2684, 1.2656, 1.2624
• Pivot resistance is noted at 1.2745, 1.2777, 1.2806

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group