GBPUSD: Note the correction and recovery back to the long term
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Overall, GBPUSD experienced a significant rally yesterday with the price rising above the 1.2730 level and strong year to date. It is currently trading at a new high of 1.2779, after hitting 1.2803, marking a 0.04% drop on the day. So what are the reasons and factors driving this currency pair?
In terms of factors that influenced: The US Dollar was generally weaker, following the Fed's policy decision, providing some support to the pair ahead of key UK PMI data and key announcements BoE books.
On the fresh outlook for GBPUSD: On the 1-hour chart, GBPUSD is currently receiving strong support above the 1.2730 breakout mark. A break below this level will result in a significant price drop, while a sustainment of this level will result in an increase in price. At the same time, the DOW bullish wave setup is forming, using Fibonacci I expect this pair to retreat to 0.618 which is 1.2758 USD or 0.5 which is 1.2744 USD. If the price quickly bounces back, the likelihood of a breakout increases.
Fundamentally and technically, the GBPUSD market is supporting the same upward scenario at the moment. With the increases indicated on the H1 chart respectively at 1.2815-1.2850-1.2880
Overall, GBPUSD experienced a significant rally yesterday with the price rising above the 1.2730 level and strong year to date. It is currently trading at a new high of 1.2779, after hitting 1.2803, marking a 0.04% drop on the day. So what are the reasons and factors driving this currency pair?
In terms of factors that influenced: The US Dollar was generally weaker, following the Fed's policy decision, providing some support to the pair ahead of key UK PMI data and key announcements BoE books.
On the fresh outlook for GBPUSD: On the 1-hour chart, GBPUSD is currently receiving strong support above the 1.2730 breakout mark. A break below this level will result in a significant price drop, while a sustainment of this level will result in an increase in price. At the same time, the DOW bullish wave setup is forming, using Fibonacci I expect this pair to retreat to 0.618 which is 1.2758 USD or 0.5 which is 1.2744 USD. If the price quickly bounces back, the likelihood of a breakout increases.
Fundamentally and technically, the GBPUSD market is supporting the same upward scenario at the moment. With the increases indicated on the H1 chart respectively at 1.2815-1.2850-1.2880
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