According to @nehcap, the GBP/USD pair experienced a slight rebound from a significant support level but is predicted to decline further in the near future.

…
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 pares corrective bounce off short-term key support confluence.

The pair currently trades last at 1.27791.

The previous day high was 1.2841 while the previous day low was 1.2741. The daily 38.2% Fib levels comes at 1.278, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2803, expected to provide resistance.

GBP/USD reverses the latest Tuesday’s corrective bounce off 1.2750 support confluence by retreating to 1.2780 during the early hours of Wednesday’s Asian session. In doing so, the Cable pair justifies the market’s risk-off mood driven by the US credit rating cut, as well as takes clues from the dovish concerns about the Bank of England’s (BoE).

Also read: Fitch downgrades US government’s AAA credit rating to AA+, US Dollar retreats

Apart from the US Dollar’s recent jump, following an initial retreat due to the credit downgrade news, the cautious mood ahead of the US ADP Employment Change and the fears of the UK recession also weigh on the GBP/USD price.

Technically, the bearish MACD signals and steady RSI (14) line joins the Pound Sterling’s inability to defend the bounce off the key 1.2750 support confluence, comprising the 50-EMA and a five-month-old rising trend line, to keep the bears hopeful.

However, a clear downside break of 1.2750 becomes necessary for the GBP/USD bears to rule further. In that case, May’s high of 1.2680 and late June’s swing low of around 1.2590 will lure the sellers.

On the other hand, the 21-EMA, two-week-old descending trend line and the support-turned-resistance line from late May together highlight the 1.2860 as the short-term key upside hurdle for the GBP/USD buyers to watch during the recovery moves.

Following that, a run-up towards the late July swing high of around 1.2995 and to the 1.3000 psychological magnet can’t be ruled out.

Trend: Further downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2794 at the time of writing. Pair opened at 1.2776 and is trading with a change of 0.14% % .

The pair is trading below its 20 Daily moving average @ 1.29, above its 50 Daily moving average @ 1.2713 , above its 100 Daily moving average @ 1.2567 and above its 200 Daily moving average @ 1.23

The previous day high was 1.2841 while the previous day low was 1.2741. The daily 38.2% Fib levels comes at 1.278, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2803, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2731, 1.2686, 1.2631
• Pivot resistance is noted at 1.2832, 1.2887, 1.2932

[/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

Share this:

• Facebook
• X

Like this:

Like Loading...