GBP/USD takes offers to refresh multi-day low

The British Pound to US Dollar (GBP/USD) exchange rate is standing on slippery grounds as it refreshes the 1.5-month low near 1.1950 during early Friday. This marks an extension of the previous day’s downside break of a six-week-old ascending trend line during the three-day losing streak.

The bearish MACD signals also favour the GBP/USD sellers, with the pair struggling to break out of the bearish trend that has been in place since mid-January. This bearishness has been driven by a combination of factors, including the US Dollar’s strength, the UK’s economic uncertainty and the UK’s Brexit-related issues.

The UK’s Retail Sales figures could be a key driver of the pair’s movements in the near-term, with the figures set to be released later today. The markets are expecting a modest increase in the figures, which could provide some support for the Pound, although the strength of the US Dollar could limit any gains.

The pair could also be influenced by any further developments in the US-China trade talks, with the US Dollar continuing to benefit from any signs of progress. The US Dollar could also be supported by the release of US Non-Farm Payrolls figures later in the week.

In terms of technical analysis, the pair is trading just below the 1.1960 level, which marks the 38.2% Fibonacci retracement of the move from 1.3170 to 1.1950. This could act as a key resistance level, with a break higher potentially leading to a move towards the 1.2040 level.

On the downside, the 1.1920 support level could be key, with a break below this level potentially leading to a move towards the 1.1850 level. The pair could also be influenced by the 50-day moving average, which is currently trading at the 1.1930 level.

In terms of trading the market structure on GBP/USD, traders should look to identify key levels of support and resistance on the charts. Traders can also look to identify potential entry and exit points by looking at the price action on the charts.

Traders should also look to incorporate technical indicators into their trading strategy, with the MACD, RSI and Stochastic indicators all providing useful insight into the pair’s movements. Traders should also look to incorporate fundamental analysis into their trading strategy, with the UK’s Retail Sales figures and US Non-Farm Payrolls figures both providing potential trading opportunities.

Overall, the GBP/USD exchange rate is standing on slippery grounds as it refreshes the 1.5-month low near 1.1950 during early Friday. The bearish MACD signals and the break of a multi-day-old ascending trend line favour the GBP/USD sellers, with the UK’s Retail Sales figures and US Non-Farm Payrolls figures both providing potential trading opportunities.

In terms of trading the market structure on GBP/USD, traders should look to identify key levels of support and resistance on the charts. Traders can also look to incorporate technical indicators and fundamental analysis into their trading strategy, with the MACD, RSI and Stochastic indicators all providing useful insight into the pair’s movements.

Overall, the GBP/USD exchange rate could be set for a period of volatility in the near-term, with the UK’s Retail Sales figures and US Non-Farm Payrolls figures both providing potential trading opportunities. Traders should look to identify key levels of support and resistance on the charts, as well as incorporate technical indicators and fundamental analysis into their trading strategy.

Share:

Related Posts