Daily Technical Analysis

Gbpusd Analysis – Cable interim bulls appear to be exhausted to drift in sideways

gbpusd Analysis

Gbpusd Analysis – Cable interim bulls appear to be exhausted to drift in sideways

The bulls’ attempts ar restrained at 7DMA, more bearish rout underway as we see no bullish substantiation from the other technical indicators. As a result, the interim bulls drift in sideways, major downtrend still remains intact – Boundary binaries best bids for speculation. as the United States is on vacation, after the bulls attempts of last two-three weeks, short term trend is currently going in sideways (see weekly chart).

As and when you see price jump, bears resume and are attempting to slide once more below 7DMA from the last few days on daily charts, the present prices ar currently stuck in a range of 1.26 and 1.2295 levels. it’s universally known the intensity of the bearish trend of GBPUSD that it tumbled more than 25th in only two and odd years. but RSI & Stoch ar Indecisive but bearish bias but indicative of more dips on monthly charts. Slow stochastic on the opposite hand noises with the attempts of a child line cross over close to oversold region on weekly terms, which means that it alarms bears trying to take over the tight rallies.

Over the medium term, we ar seeing the copy-cat range method of the summer range we’ve got been looking for. This has truly become {a range|a variety|a spread} within that range, with 1.2300 – 1.2510 the inner range, while 1.2080 – 1.2675 is the current outer range. 1.28-1.30 is major resistance for us above there. The cross is that the main driver at this stage. Long term, we see a larger risk of another downside test, however that should complete the bear cycle we’ve got been in from the 2007 highs at 2.1160. a major base is then expected to develop for an ultra-long term move towards 1.55-1.70 region. while the present prices on this plotting ar well below EMAs. Monthly MACD’s bearish crossover continued to move below zero level which is bearish region. Hence, contemplating above technical reasoning, we’d still foresee additional GBP weakness in medium terms.

Trade tips: On intraday speculation purpose, contemplating above technical reasoning, we could foresee equal possibilities for each bears and bulls with 7DMA as strong support with slight bullish bias. Consequently, the double touch option is useful for traders who believe {the price|the worth|the value} of an underlying asset would undergo a large price movement, but who ar unsure of the direction. A trader can use a double touch option with barriers of about 100 pips between 1.2490 and 1.2390 to capitalize on this outlook. Some traders view this type of exotic option as being like a straddle position since the trader stands to benefit on a calculated price movement up or down in each scenarios.

gbpusd Analysis

About the author

Mohammad Riad


Click here to post a comment

Your email address will not be published. Required fields are marked *

  • GBP/USD Fundamental Analysis: November 24, 2016

    The sterling pound continues to be the sole currency that has survived the far-reaching effects of the USD’s recent surges since the GBP has continuously inched higher against the US dollar even during the US elections. The GBP/USD pair consolidated and range for the majority of yesterday’s sessions but the USD further increased during the opening of the New York session as economic releases from the US such as the Durable Goods data came out exceeding initial market expectations.

    The GBP/USD pair initially plummeted towards 1.2350 points but recovered immediately and broke through 1.2400 and is currently resting just below the 1.2450 region. The GBP is currently on the strong side and should the USD exhibit weakness in the coming days, then the GBP/USD is expected to rise to 1.2600 and could possibly go higher.

    The FOMC meeting minutes were released yesterday and has confirmed the possibility of a Fed rate hike this coming December especially since its members talked about the urgent need to increase interest rates as soon as possible. The minutes did not add much volatility to the market since it met initial market speculations. For today’s trading session, there are no important economic releases expected from both the US and the UK, and the currency pair is expected to further consolidate with bullish biases enabling it to sustain its position over 1.2400. Market players are slowly regaining their confidence in the sterling pound, and is expected to further increase in the coming sessions.

  • GBP/USD Fundamental Analysis: November 28, 2016

    The GBP/USD exhibited a generally bullish stance last week as the sterling pound continued to counter the recent strengthening of the USD, with the GBP the lone currency that has held its ground against the ever-increasing value of the USD. The strong stance of the GBP is reflective of the currency settling as the invocation of Article 50 draws nearer and after a positive reaction from the markets after the high court has ruled that the Parliament will have to go through a debate and discussion before pushing through with the said article. This has resulted into the market receiving assurance that the UK economy will be well taken care of as the region goes through the Brexit process.

    This has caused the GBP/USD pair to continuously consolidate on both sides of the 1.2500 region in spite of the added strength of the USD. The GBP did not experience much volatility for the past week as the Hammond Autumn statement predicted a somewhat negative forecast for the UK economy for the next two years, thereby meeting general market expectations.

    However, for this week, the currency pair is expected to experience added volatility as currency flows are more likely to have an effect on the value of the sterling pound. The NFP employment report from the US is also expected to determine whether the Fed will be increasing the frequency of its rate hikes this coming 2017.



Recommended Broker

  • New_to_Trading_Guide_300X250_XFR.gif

Watch the Video

  • XT_Video_300x250_XFR.gif