GBP/USD outlook: Cable rises above 1.2900 on solid economic data
|GBP/USD
Cable rose to the highest since July 25 on Friday, benefiting from improved risk sentiment after upbeat US data on Thursday (jobless claims / retail sales) and solid UK retail sales added to fading recession fears.
Sterling also appreciated the still hawkish stance of BoE, as expectations for another rate cut (after the central bank reduced borrowing cost by 25 basis points on Aug 1 meeting) remain below 50%.
Fresh bulls cracked round-figure 1.2900 barrier (also Fibo 61.8% of 1.3044/1.2664 bear-leg), as Friday’s acceleration higher signaled continuation of recovery leg from 1.2664 (Aug 8 low) after bulls paused for two-day consolidation.
Bullish daily studies support the action, though overbought conditions may produce headwinds.
Near-term action should stay above 1.2854 (broken 50% retracement / daily Kijun-sen) to keep bulls in play.
Close above 1.2900 handle to strengthen near-term structure for attack at 1.2954 (Fibo 76.4%) and 1.3000 (psychological) in extension.
Res: 1.2914; 1.2954; 1.3000; 1.3044.
Sup: 1.2873; 1.2854; 1.2820; 1.2790.
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.