fxs_header_sponsor_anchor

Analysis

GBP/USD outlook: Bullish bias above rising daily cloud

GBP/USD

Cable remains at the front foot and extends recovery on Friday morning, after fresh bulls registered break and close above the top of rising daily cloud.

Fading US recession fears and solid Chinese economic data revived risk sentiment while sterling gets support from diverging US/UK monetary policies (bets for the size of Fed rate cuts this year went well above expectations for BoE’s action) keeping pound underpinned.

Fresh gains cracked barriers at 1.2754/60 (Fibo 23.6% of 1.3044/1.2664 / falling daily Tenkan-sen), with daily close above these levels to boost developing bullish signals on formation of reversal pattern on daily chart.

Mixed daily studies lack clearer direction signal (negative momentum / mixed setup of MA’s / north-heading RSI).

Near term bias is expected to remain with bulls while the price stays above rising daily cloud, but extension through pivotal barriers at 1.2780 / 1.2810 (55DMA / Fibo 38.2%) is needed to confirm signal for recovery continuation.

Conversely, penetration of daily cloud (top lays at 1.2715) would weaken near-term structure and expose lower pivots at 1.2685/58 (converging 100/200DMA’s) loss of which will be bearish.

Res: 1.2739; 1.2760; 1.2780; 1.2815.
Sup: 1.2754; 1.2715; 1.2685; 1.2658.

Interested in GBP/USD technicals? Check out the key levels

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.