Economic Calendar
Higher-than-expected levels of volatility should be anticipated, considering the fundamental news coming out of the UK. Friday could bring the highest levels of volatility when Manufacturing PMI data are released.
GBP/USD hourly chart analysis
If the short-term bias remains bearish and further dollar strength supports it, the 1.21000 level could be tested. However, if a bullish reversal occurs, the 1.23000 level may be tested, although no significant bullish movement has been seen in the near term.
Hourly Chart
GBP/USD daily candle chart analysis
If bearish momentum continues, the GBP/USD pair could test the 1.20500 price level in the near term. This would suggest a continued downtrend, with the potential for further declines. In the event of a bullish reversal, the 50-period, 100-period, and 200-period moving averages may act as key resistance levels, limiting any upward movement and potentially capping the rally. If bullish momentum does materialize, these moving averages will be important areas to watch for potential rejection. On the other hand, further downside movement in the pair could be reinforced by any fundamental news or data that confirms the continuation of the current bearish trend, increasing the likelihood of additional price declines. Market sentiment and upcoming economic reports could play a crucial role in determining the direction of the FX pair in the near term.Read More: Technical Analysis
Traders are long
Last weeks trend continues The majority of traders are currently anticipating a bullish move. This suggests that most market participants believe the price may rise in the short term, despite any ongoing bearish pressures or trends. The strong bullish sentiment could be driven by factors such as expectations of a market reversal, positive economic data, or other key events that could influence the direction of the market.
However, this sentiment may not necessarily align with the technical indicators or broader market trends, meaning that any shift in fundamentals or a change in market conditions could quickly alter traders' outlooks and expectations.
However, this sentiment may not necessarily align with the technical indicators or broader market trends, meaning that any shift in fundamentals or a change in market conditions could quickly alter traders' outlooks and expectations.