GBP/USD Selling Breaks Cloud Top Brings 1.2902 Swing Into Focus; Short-Sterling On Verge of Range Resolution

Intermediate

GBP is under broad pressure as dovish weekend comments from Bank of England’s monetary policy committee ratchets rate cut bets. Jan. 31 BoE rate cut odds jump to 50-50 vs. a 0% chance of a move just a week ago. GBP/USD has pierced key support from the Ichimoku Cloud Top and pressures a move to key swing low at 1.2902; below here would bolster negative risks to the 50% retrace at 1.2736.

GBP chart

Short Sterling 20 Futures rally in response. 3 day surge against the 200d @ 99.26 breaks the 99.37 range high as well as piercing the 61.8% fib @ 99.41. Close above range high would complete a basing process and potentially risk a revisit to the 99.55 high.

Short Sterling chart

Editor

Akif SH. Din MSTA, CFTe, 2018 Bronwen Wood Memorial Prize Winner, has a solid understanding of global markets, fundamental analysis as well as having a vast amount of knowledge in technical analysi...continued

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