This Trade setup has been created based on Fundamental & Technical Concepts.
GBP/USD is fading an uptick to daily highs of 1.3891, although remains well off the weekly lows at 1.3855 in early European dealings.
The retreat in the US dollar across the board helps the rebound in the cable but the risk-off market mood spoils the party for the bulls.
Despite the renewed upside, the pair remains exposed to downside risks amid expectations of earlier Fed’s tapering, looming Brexit concerns and the UK political jitters.
GBP/USD technical outlook
Looking at the four-hour chart, GBP/USD is has bounced off the falling wedge support at 1.3855, although the upside attempts remain capped below the downward-sloping 21-Simple Moving Average (SMA) at 1.3905.
The immediate resistance is seen at the 50-SMA of 1.3913. Further up, the falling wedge upside barrier at 1.3935 could be put to test if the recovery momentum picks up pace.
However, with the Relative Strength Index (RSI) still lurking below the midline, the cable’s bounce appears shallow.
A breach of the abovementioned critical support could open floors towards the horizontal 200-SMA at 1.3835, almost where the 100-SMA lies.
Reference :- Click here
GBP/USD is fading an uptick to daily highs of 1.3891, although remains well off the weekly lows at 1.3855 in early European dealings.
The retreat in the US dollar across the board helps the rebound in the cable but the risk-off market mood spoils the party for the bulls.
Despite the renewed upside, the pair remains exposed to downside risks amid expectations of earlier Fed’s tapering, looming Brexit concerns and the UK political jitters.
GBP/USD technical outlook
Looking at the four-hour chart, GBP/USD is has bounced off the falling wedge support at 1.3855, although the upside attempts remain capped below the downward-sloping 21-Simple Moving Average (SMA) at 1.3905.
The immediate resistance is seen at the 50-SMA of 1.3913. Further up, the falling wedge upside barrier at 1.3935 could be put to test if the recovery momentum picks up pace.
However, with the Relative Strength Index (RSI) still lurking below the midline, the cable’s bounce appears shallow.
A breach of the abovementioned critical support could open floors towards the horizontal 200-SMA at 1.3835, almost where the 100-SMA lies.
Reference :- Click here