-
GBP/USD’s rebound off 200-day SMA still holds.
-
Stochastic in overbought area.
-
RSI ticks south above 50 level.
GBP/USD continues last week's rebound off the 200-day SMA and the 50.0% Fibonacci retracement level of the up leg from 1.2300 to 1.3045 at 1.2670, but with some weakness today. The intraday bias looks neutral to negative, as the stochastic is still standing above the 80 level but is losing some steam, while the RSI, although above 50, seems to be making its way down.
If the pair manages to head higher, the one-year high of 1.3045 could serve as a trigger point for steeper bullish action. Further north, cable could run toward the 1.3140 level, a strong barrier from last year.
However, if the pair reverses to the downside, investors could move first at the 23.6% Fibonacci of 1.2870 before meeting the 20- and then the 50-day simple moving averages (SMAs) at 1.2825 and 1.2800 respectively. If the price continues to drop, support could next come somewhere between the uptrend line and the 38.2% Fibonacci of 1.2760.
In the medium-term picture, the bounce off 1.2300 turned the outlook from neutral to bullish. Chances for another bullish move are still rising as the 200-day SMA keeps rising.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
AUD/USD extends the retreat to near 0.6650 as US Dollar finds footing
AUD/USD is back in the red, testing 0.6650 in Friday's Asian trading. A renewed US Dollar uptick undermines the pair, even as risk sentiment remains in a sweeter spot. However, the downside appears limited amid the RBA's hawkish stance and hopes for more Chinese stimulus could act as a tailwind for the Aussie.
USD/JPY drops back below 153.00 after Japan's verbal intervention
USD/JPY drops back below 153.00 early Friday, snapping the rebound. Japanese verbal intervention outweighs the upbeat market mood and the post-Fed US Dollar rebound, exerting a fresh bearish pressure on the pair. US sentiment data is next in focus.
Gold price slides back below $2,700 mark amid modest USD strength
Gold price met with a fresh supply and eroded a part of the overnight recovery gains. The Trump trade optimism revives the USD demand and weighs on the precious metal. Retreating US bond yields and bets for additional Fed rate cuts could help limit losses.
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut
The crypto market has remained in the green following the Federal Reserve's decision to lower interest rates. Historically, Bitcoin and the crypto market have reacted positively to low interest rate environments.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.