GBPUSD Daily Update: Sterling faces buying pressure
Hi traders.
We've started a new section in our TradingView profile with daily updates for major pairs, gold, oil, and indices.
The GBP/USD pair is trading significantly lower after triggering an H&S pattern - a setup that we shorted in our Trading Club and posted here on TradingView.
The previous week, markets dumped the pound on views that the UK economy is slowing down and that the BoE will likely need to adopt a looser monetary policy - in line with other major central banks.
As a result, the GBPUSD pair fell to levels not seen in years (ignoring the Jan 03 flash-crash).
However, the last two days have been beneficial for the pound, not only because the price reached strong horizontal support, but also because markets started to price in a higher chance for a US rate cut.
Still, the pair trades in an overall downtrend and we won't buy it until we receive more signs of a trend reversal. The RSI formed a triple bullish divergence, suggesting that we could see higher prices in the coming days.
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We've started a new section in our TradingView profile with daily updates for major pairs, gold, oil, and indices.
The GBP/USD pair is trading significantly lower after triggering an H&S pattern - a setup that we shorted in our Trading Club and posted here on TradingView.
The previous week, markets dumped the pound on views that the UK economy is slowing down and that the BoE will likely need to adopt a looser monetary policy - in line with other major central banks.
As a result, the GBPUSD pair fell to levels not seen in years (ignoring the Jan 03 flash-crash).
However, the last two days have been beneficial for the pound, not only because the price reached strong horizontal support, but also because markets started to price in a higher chance for a US rate cut.
Still, the pair trades in an overall downtrend and we won't buy it until we receive more signs of a trend reversal. The RSI formed a triple bullish divergence, suggesting that we could see higher prices in the coming days.
Like our analysis? Please support us by hitting the "LIKE" button. Thanks!
