- Monday produced a selloff across global equity markets in a “buy the rumour, sell the fact” type move, after the announcement of solid progress in the US-Sino trade talks.
- This “risk off” move also encouraged a flight to safety move in Forex markets, with the US Dollar the main beneficiary as a safe haven.
- For GBPUSD, although the intermediate-term outlook currently remains positive, this US Dollar rebound has seen a push below some technical, chart support levels, which shifts the immediate bias for a correction to the downside.
GBPUSD bias switches for a correction lower
A setback Monday from just below the 1.3286 resistance level to prod below the up trend line from mid-February and minor 1.3170 support from Friday, to switch risks lower for Tuesday.
The late February surge through 1.3218 set an intermediate-term bullish trend
- We see a downside bias for 1.3140; break here aims for 1.3049.
- But above 1.3286opens risk up to 1.3350/63.
Intermediate-term Outlook – Upside Risks: We see an upside risk for 1.3473 and 1.3608
- What Changes This? Below 1.2967 shifts the outlook back to neutral; through 1.2771 is needed for a bear theme.
4 Hour GBP/USD Chart