GBP/USD dipped below 1.2100 and then rebounded to 1.2150 following the FOMC meeting and Powell's press conference, fueled by the weaker US Dollar. Attention has now shifted to the Bank of England, where interest rates are expected to remain unchanged. The Relative Strength Index (RSI) on the 4-hour chart continues to hover near the 50 mark, indicating indecision in the GBP/USD pair.
The 100-period Simple Moving Average (SMA) has formed an immediate resistance at 1.2175, just before the 1.2200 level (the 23.6% Fibonacci retracement level of the latest downtrend and the 200-period SMA). A close above this level on the 4-hour chart could attract technical buyers, opening up the possibility for an extended recovery towards 1.2260 (a static level).
On the downside, the first support lies at 1.2100 (a static level and psychological barrier) followed by 1.2050 (the recent low point of the downtrend) and 1.2000 (a psychological level and a static point).
Investors and traders are closely monitoring these levels and market dynamics, adjusting their strategies to the evolving situation. The GBP/USD pair's movements reflect the nuanced interplay of economic indicators, central bank decisions, and investor sentiment, making it a focal point in the current forex landscape. As the market unfolds, market participants remain vigilant, ready to adapt to the shifting winds of the financial world.
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GlobalHorns
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We have the exact same target.
Aretha_ALL
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@GlobalHorns, Do you have the same thoughts as me?