GBP USD Forecast – The Pound rebounds

Intermediate
  • A solid recovery by Sterling over the past 24 hours, as the GB Pound has reacted to positive soundbites and rumours regarding developments in the Brexit negotiations.
  • Furthermore, global asset classes have seen a shift to more of a “risk on” environment since last Friday, fuelled by an easing of global economic growth worries amid the positive tone coming from US-Sino trade war negotiations.
  • This has seen a broader weakening of the US Dollar against major currencies since Friday, as the US$ has previously in February been seen a safe haven currency of choice.
  • Here we look at the Pound versus the US Dollar, GBP USD Forex rate.

 

GBPUSD threats switch back higher

A surge back higher Tuesday through 1.2959, 1.2996 and 1.3052 resistances, rejecting bear forces from the February selloff (through the key 1.2831/29 area), setting a positive tone within the broader, intermediate-term range, flipping risks higher into Wednesday,

The mid-February plunge through the key 1.2831/29 supports set an intermediate-term range we see as 1.2668 to 1.3218.

For Today:

  • We see an upside bias for 1.3077; break here quickly aims for 1.3103 and then maybe towards 1.3169.
  • But below 1.2960 opens risk down to 1.2890, possibly 1.2830/25.

Intermediate-term Range Breakout Parameters: Range seen as 1.2668 to 1.3218.

  • Upside Risks: Above 3218 sets a bull trend to aim 1.3299 and 1.3473.
  • Downside Risks: Below 2668 sees a bear trend to target 1.2437 and maybe towards 1.2000.

 

4 Hour GBP USD Chart

gbp usd chart


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Current Market Analysis
Euro breaks down, GBPCAD threatens upside

US Dollar Index holds support and rebounds EURUSD seeds multiple negative signals, downside risks GBPUSD sends buy signal GBPCAD sets up more bullish AUDUSD negative and USDCAD buy signal USDTRY and USDBRL surge

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