British pound:The bearish double top posture to unwind
British pounds dropped below the 1.1900 psychological level against Dollar after Fed Chair Powell’s hawkish comments in his testimony in front of Senate Banking Committee on Tuesday.
The greenback remains the key driver for the markets as investors are still digesting the expectation for higher terminal rates, and that will give dollar additional supports in the short terms. On the UK side, few scheduled risk events can trigger price actions on the economic calendar this week, expect for GDP data on Friday. Thus, GBP/USD may have a bearish fundamental outlooks
Technically, GBP/USD has formed a double top pattern on the daily chart, which hints a further downside move and the bears have push the currencies under the “neckline” around 1.1185, which is the 38.2% Fibonacci retreatment of 2021-2022 move. RSI indicator extending lower under the neutral level suggests the bearish momentum are still in control.
The greenback remains the key driver for the markets as investors are still digesting the expectation for higher terminal rates, and that will give dollar additional supports in the short terms. On the UK side, few scheduled risk events can trigger price actions on the economic calendar this week, expect for GDP data on Friday. Thus, GBP/USD may have a bearish fundamental outlooks
Technically, GBP/USD has formed a double top pattern on the daily chart, which hints a further downside move and the bears have push the currencies under the “neckline” around 1.1185, which is the 38.2% Fibonacci retreatment of 2021-2022 move. RSI indicator extending lower under the neutral level suggests the bearish momentum are still in control.