The GBPUSD currency pair, currently at a rate of 1.27616, has experienced a 0.22% increase. This is due to the positive attitude in the market, with attention on the earnings of NVIDIA and the potential for a rate hike by the Bank of England.

…
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 rises 0.22% as market sentiment remains upbeat, with NVIDIA earnings and BoE rate hike prospects in focus.

The pair currently trades last at 1.27616.

The previous day high was 1.2766 while the previous day low was 1.2689. The daily 38.2% Fib levels comes at 1.2719, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2737, expected to provide support.

GBP/USD erases last Friday’s losses and climbs above the 1.2750 figure though it remains trading subdued amidst the lack of catalyst involving the Sterling (GBP) and the US Dollar (USD). US Treasury bond yields rise, but the US Dollar (USD) is pressured ahead of the Jackson Hole Symposium. At the time of writing, the GBP/USD is trading at 1.2760, registering gains of 0.22%.

In the meantime, market players’ mood remains positive, as earnings from the chipmaker NVIDIA are set for release on Wednesday. Hence, high beta currencies like the GBP post gains propelled by sentiment and expectations for further tightening by the Bank of England (BoE), with traders pricing in a 25 bps rate hike, to 5.50%.

Therefore, the interest rate differential between the US and the UK will close, and with the BoE ready to raise rates at least twice, towards the 5.75% area, the GBP/USD could resume its uptrend and challenge the 1.3000 figure ahead of testing the year-to-date (YTD) high at 1.3147.

In the week ahead, the UK economic docket will feature the CBI Industrial Trend Orders, S&P Global PMIs, and the GfK Consumer Confidence. On the US front, the agenda will feature Fed speakers, housing data, S&P Global PMIs, Durable Good Orders, unemployment claims, and the Federal Reserve (Fed) Chair Jerome Powell’s speech on Friday.

The GBP/USD price action remains neutral to downward biased, capped by the 50-day Simple Moving Average (DMA) at 1.2791, a barrier that keeps the pair from reaching the 1.2800 figure. A breach of the latter would expose the July 27 daily high at 1.2995. Conversely, if GBP/USD sellers drag the spot price below 1.2700, the pair could test the August 3 daily low of 1.2620 before dipping towards the 200-DMA at 1.2382.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2764 at the time of writing. Pair opened at 1.2734 and is trading with a change of 0.24 % .

The pair is trading below its 20 Daily moving average @ 1.2766, below its 50 Daily moving average @ 1.2788 , above its 100 Daily moving average @ 1.2628 and above its 200 Daily moving average @ 1.2379

The previous day high was 1.2766 while the previous day low was 1.2689. The daily 38.2% Fib levels comes at 1.2719, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2737, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2693, 1.2653, 1.2616
• Pivot resistance is noted at 1.277, 1.2807, 1.2847

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group