GBPUSD Technical Analysis and Forecast Week 18-22 Sept
GBPUSD Technical Analysis and Forecast Week 18-22 Sept
The bank of England made clear this week that markets are underestimating the possibility of an interest rate hike this year, despite weak GDP and wage growth numbers. The clear message was sent out by governor Carney after Thursday’s MPC meeting and reinforced by a hawkish speech by BOE policy maker Gert Vlieghe, a one-time dove. Cable duly responded hitting a 15-month high and still has room to move to the upside, especially as the USD remains weak.
The current strong bullish movement will continue as long as the GBPUSD makes weekly closings above 1.34500. Next target will be 1.36600 Fibonacci Expansion 161.80% of the movement Low on June 19th, High on August 8th and Low on August 24th.
Then the next level which can be tested is 1.38580 Fibonacci Retracement 61.80% of the downward movement from 1.50400 started on June 24th, 2016.
Possible pullback levels are 1.35300 and 1.34500. If GBPUSD makes daily closings below 1.34500 the price can move towards 1.3260 Fibonacci Retracement 38.20.
RSI and Stochastic Oscillator are both in the overbought zone. We can see some corrections during the first trading day of the week.
The bank of England made clear this week that markets are underestimating the possibility of an interest rate hike this year, despite weak GDP and wage growth numbers. The clear message was sent out by governor Carney after Thursday’s MPC meeting and reinforced by a hawkish speech by BOE policy maker Gert Vlieghe, a one-time dove. Cable duly responded hitting a 15-month high and still has room to move to the upside, especially as the USD remains weak.
The current strong bullish movement will continue as long as the GBPUSD makes weekly closings above 1.34500. Next target will be 1.36600 Fibonacci Expansion 161.80% of the movement Low on June 19th, High on August 8th and Low on August 24th.
Then the next level which can be tested is 1.38580 Fibonacci Retracement 61.80% of the downward movement from 1.50400 started on June 24th, 2016.
Possible pullback levels are 1.35300 and 1.34500. If GBPUSD makes daily closings below 1.34500 the price can move towards 1.3260 Fibonacci Retracement 38.20.
RSI and Stochastic Oscillator are both in the overbought zone. We can see some corrections during the first trading day of the week.
