- 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.
- 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