Hello everyone, as we all know the market action discounts everything :)
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The GBP/USD has rallied a bit in the last few days where the Pair price jumped from 1.3571 to 1.3971, but the Bulls are struggling to pass the 1.39820 resistance line, if that would happen we could be seeing a big Bullish movement in the market price.
The market is showing a lot of Bullish signs tho and is most likely to move in 1 out of 2 different ways in the next few days :
Scenario 1 :
The market price is trading near the resistance line at 1.39330, if a breakout happens the price most likely will be headed to the second resistance line 1.39820 where it will determine the outcome movement for this pair.
If the Bulls were able to stay in control then it could be the beginning of a Good bullish movement.
Scenario 2 :
The market price is trading near the resistance line at 1.39330, if the bears were able to gain control then we could be seeing the price dropping to the first support line 1.38600 and then a battle will happen to determine the price movement, If the bears stayed in control then a Bearish movement could drop the price to the second support line at 1.37860 and that's were the main test between the Bears and Bulls will happen.
Technical indicators are showing Bullish Signs as we see that :
1) The market price is above the 5 10 20 50 100 and 200 MA and EMA (Bullish Sign)
2) The RSI is at 55.37 showing great strength in the market and on its way to the overbought zone, and no divergences were found yet.(Bullish sign)
3) The MACD crossed the 0 line into a bullish state with a positive crossover between the MACD and the Signal line. (Bullish sign)
4) Bull/Bear Power is at 0.0083 (Bullish sign)
Support & Resistance points :
support Resistance
1) 1.3860 1) 1.3933
2) 1.3836 2) 1.3982
3) 1.3786 3) 1.4006
Fundamental point of view :
The Bank of England (BoE) was pretty much as expected, with one dissenter and modest tightening seen over the forecasting period. GBP/USD saw a modest uplift in the immediate aftermath of the policy decision. The move was short-lived, however. In the view of economists at TD Securities, cable should remain fairly well-anchored around current levels.
“The MPC voted to leave policy on hold today, with one dissent to reduce QE prematurely. There were two notable changes in the committee's communications: forward guidance was revised to acknowledge that some policy tightening would be appropriate by late-2024, and the sequence of tightening steps was revised, with a lower Bank Rate threshold to commence balance sheet runoff.”
“While we would not be surprised to see an upward extension to test 1.3960, cable may struggle to advance much beyond 1.3985 without fresh catalysts.”
“Solid support remains in place around 1.3875, with the 1.3835/1.3845 zone as the next attractor to the downside.” According to FXStreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The GBP/USD has rallied a bit in the last few days where the Pair price jumped from 1.3571 to 1.3971, but the Bulls are struggling to pass the 1.39820 resistance line, if that would happen we could be seeing a big Bullish movement in the market price.
The market is showing a lot of Bullish signs tho and is most likely to move in 1 out of 2 different ways in the next few days :
Scenario 1 :
The market price is trading near the resistance line at 1.39330, if a breakout happens the price most likely will be headed to the second resistance line 1.39820 where it will determine the outcome movement for this pair.
If the Bulls were able to stay in control then it could be the beginning of a Good bullish movement.
Scenario 2 :
The market price is trading near the resistance line at 1.39330, if the bears were able to gain control then we could be seeing the price dropping to the first support line 1.38600 and then a battle will happen to determine the price movement, If the bears stayed in control then a Bearish movement could drop the price to the second support line at 1.37860 and that's were the main test between the Bears and Bulls will happen.
Technical indicators are showing Bullish Signs as we see that :
1) The market price is above the 5 10 20 50 100 and 200 MA and EMA (Bullish Sign)
2) The RSI is at 55.37 showing great strength in the market and on its way to the overbought zone, and no divergences were found yet.(Bullish sign)
3) The MACD crossed the 0 line into a bullish state with a positive crossover between the MACD and the Signal line. (Bullish sign)
4) Bull/Bear Power is at 0.0083 (Bullish sign)
Support & Resistance points :
support Resistance
1) 1.3860 1) 1.3933
2) 1.3836 2) 1.3982
3) 1.3786 3) 1.4006
Fundamental point of view :
The Bank of England (BoE) was pretty much as expected, with one dissenter and modest tightening seen over the forecasting period. GBP/USD saw a modest uplift in the immediate aftermath of the policy decision. The move was short-lived, however. In the view of economists at TD Securities, cable should remain fairly well-anchored around current levels.
“The MPC voted to leave policy on hold today, with one dissent to reduce QE prematurely. There were two notable changes in the committee's communications: forward guidance was revised to acknowledge that some policy tightening would be appropriate by late-2024, and the sequence of tightening steps was revised, with a lower Bank Rate threshold to commence balance sheet runoff.”
“While we would not be surprised to see an upward extension to test 1.3960, cable may struggle to advance much beyond 1.3985 without fresh catalysts.”
“Solid support remains in place around 1.3875, with the 1.3835/1.3845 zone as the next attractor to the downside.” According to FXStreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.