GBPUSD: Tracking the Downtrend – Key Support Levels and Shortin

12 Oca

Trend Analysis
The GBPUSD GBP/USD pair remains firmly bearish, with strong selling pressure driving prices lower.
The downtrend is reinforced by macroeconomic factors, including the stronger DXY USD and the UK's fiscal challenges.

Trading Strategy

Short Setup:

• Entry: Wait for a pullback to 1.2300 (resistance turned support) or any bounce that shows rejection near resistance levels.
  
• Stop Loss: Above 1.2350 to avoid false breakouts.
  
• Target: Short-term targets at 1.2100 and 1.2000. Extend to 1.1800 if momentum persists.
  
• Downside Scenario:If 1.2100 breaks decisively, consider entering additional short positions targeting 1.2000 or lower.
  

Key Indicators to Monitor

• US Dollar Strength: Watch for continued DXY USD strength driven by Fed policy and US economic resilience.
  
• UK Data: Monitor upcoming UK macroeconomic releases (e.g., CPI, GDP) that could influence GBP sentiment.
  
• Technical Confirmation: Look for sustained breakouts or rejections near identified levels before entering trades.
  

5 gün önce

İşlem aktif

Significant drop in the Services CPI, which largely falls outside the Bank of England's primary focus. Despite this, the lower-than-expected figures have had a cooling effect on the market, leading to a reassessment of the pound sterling (GBP/USD).
Initially, there has been pressure on prices, with anticipation of two interest rate cuts factoring into current levels. The document also highlights the importance of upcoming growth data and the influence of the 10-year gilt auction results on market sentiment.
The reevaluation of the GBP's position is anticipated as key data continues to emerge, influencing short and long-term strategies in currency trading.

In terms of trading dynamics, there has been a notable reduction in the length of GBP positions among short-term finance houses, which suggests a bearish outlook.
Conversely, the GBP/USD finds immediate support around 1.2140/50, with potential to test resistance at 1.2320 and higher resistance at 1.2850 should conditions improve.
Today’s close above the 200-day moving average (0.84255) could signal a bullish turn, pending further developments.

4 gün önce

Not

Cable failed exactly where it should have in the 1.2300/25 zone: Support will be found at 1.2140/50

17 saat önce

Not

Trade still open with additional capacity to short GBP.