The GBPUSD currency pair, currently at a rate of 1.28196, has continued to gain momentum for four consecutive days and is now trading near a peak not seen in 14 months.
…
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 gains positive traction for the fourth straight day and trades around a 14-month top.
The pair currently trades last at 1.28196.
The previous day high was 1.2848 while the previous day low was 1.2768. The daily 38.2% Fib levels comes at 1.2818, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2799, expected to provide support.
The GBP/USD pair gains some positive traction for the fourth successive day on Monday and trades just below mid-1.2800s, near its highest level since April 2022 during the Asian session.
The British Pound (GBP) continues with its relative outperformance in the wake of expectations that the Bank of England (BoE) will continue with its policy tightening to stop inflation expectations from becoming entrenched. In fact, the BoE is universally anticipated to hike the benchmark rates by 25 bps on Thursday, to 4.75% or the highest since April 2008. Moreover, the markets are pricing in the possibility of a bigger, 50 bps lift-off, which, along with subdued US Dollar price action, acts as a tailwind for the GBP/USD pair.
The uncertainty over the Federal Reserve’s (Fed) rate-hike path fails to assist the USD to capitalize on Friday’s rebound from over a one-month low and is seen as another factor lending support to the GBP/USD pair. The Fed signalled last week that borrowing costs may still need to rise by as much as 50 bps by the end of this year. That said, the incoming softer US macro data raised questions over how much headroom the Fed has to keep raising rates and fueled speculations that the end of the policy tightening cycle is nearing.
Hence, the market focus will remain glued to Fed Chair Jerome Powell’s two-day congressional testimony on Wednesday and Thursday. Investors this week also confront the release of the latest consumer inflation figures on Wednesday. This will be followed by the highly-anticipated BoE monetary policy decision on Thursday. Apart from this, the flash PMI prints from the UK and the US should provide some meaningful impetus to the GBP/USD pair. Heading into the key data/event risks, bulls might refrain from placing fresh bets.
Furthermore, relatively lighter trading volumes on the back of a bank holiday in the US warrant some caution before positioning for an extension of the recent upward trajectory witnessed over the past three weeks or so. Nevertheless, the aforementioned fundamental backdrop suggests that the path of least resistance for the GBP/USD pair is to the upside and any meaningful corrective pullback might still be seen as a buying opportunity.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.283 at the time of writing. Pair opened at 1.2822 and is trading with a change of 0.06 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2830 |
| 1 | Today Daily Change | 0.0008 |
| 2 | Today Daily Change % | 0.0600 |
| 3 | Today daily open | 1.2822 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2495, 50 SMA 1.2492, 100 SMA @ 1.2324 and 200 SMA @ 1.2045.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2495 |
| 1 | Daily SMA50 | 1.2492 |
| 2 | Daily SMA100 | 1.2324 |
| 3 | Daily SMA200 | 1.2045 |
The previous day high was 1.2848 while the previous day low was 1.2768. The daily 38.2% Fib levels comes at 1.2818, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2799, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2777, 1.2733, 1.2697
- Pivot resistance is noted at 1.2857, 1.2893, 1.2937
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2848 |
| Previous Daily Low | 1.2768 |
| Previous Weekly High | 1.2848 |
| Previous Weekly Low | 1.2487 |
| Previous Monthly High | 1.2680 |
| Previous Monthly Low | 1.2308 |
| Daily Fibonacci 38.2% | 1.2818 |
| Daily Fibonacci 61.8% | 1.2799 |
| Daily Pivot Point S1 | 1.2777 |
| Daily Pivot Point S2 | 1.2733 |
| Daily Pivot Point S3 | 1.2697 |
| Daily Pivot Point R1 | 1.2857 |
| Daily Pivot Point R2 | 1.2893 |
| Daily Pivot Point R3 | 1.2937 |
[/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
