The GBPUSD extended its plunge by -0.20% early Friday morning after a massive selloff on Thursday. The pair made a fresh 2-year low at 1.2280 despite the BoE raising rates by 25bps to their highest in 13 years.
The US dollar continues to pin down a weak Pound after the aggressive rate hike by the Fed. The Fed raised its rates by 50bps to 1% on Wednesday, the highest since 2000. The EU sanction plan to sanction Russian oil risks an economic recession in the UK as BoE continues to battle rising inflation.
Traders shift their focus to the US jobs report as a critical tell-tale sign in justifying the aggressive monetary tightening by the Fed. A lineup of Fed speakers is scheduled to speak in the New York session.
FOMC members James Bullard, William and Daly will be addressing inflationary concerns in the US. BoE also has its lineup of members including MPC members Pill and Tenryro later in the New York session.
The GBPUSD extended a further drop below 1.2682 as the pair faces renewed selling pressure. The pair is currently bearish from a technical perspective as indicated by the Williams alligator. The moving averages are used as dynamic resistance and support.
See real-time quotes provided by our partner.
Bears maintain their targets at 1.2100 if they manage to break below the 1.2200 near-term barrier. The RSI indicator reading is not yet extremely oversold hence buyers may seek a lower bottom.
However a break above 1.3000 will be necessary to change the direction of GBPUSD to bullish in the near-term. Upside gains are capped by 1.26822 previous support turned resistance.
The ActivTrader Sentiment tool shows an increasing buying sentiment by retail traders in the near term. This increasing bullishness may indicate the GBPUSD has not bottomed yet and the outlook remains bearish unless the price breaks above the 1.2682 previous support turned resistance.
The GBPUSD recovered losses after sweeping below 1.2300 psychological support during the European session. A price breakout from the weekly range, below the 1.2400 on Thursday reinforced selling pressure on the pair and bears could target below 1.2300 in the near term.
See real-time quotes provided by our partner.
This can be confirmed by the Bollinger Band indicator showing an expansion of the outer bands indicating increasing selling pressure in the near term.
However, the pair has a near-term barrier to the upside at 1.2470 which coincides with the Bollinger Band Baseline (orange). A break above that area may change the outlook to bullish in the near term. The Stochastic Oscillator reading below 25 shows signs that the pair may be subject to sharp price retracements in the short-term.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |