Forex Analysis:GBPUSD Interim Support Seen At 1.2100

Bottom line: GBPUSD long term bullish structure remains intact as prices stay above 1.1414…

Bottom line: GBPUSD long term bullish structure remains intact as prices stay above 1.1414 lows. The currency is retracing lower since last Friday and might find intermediary support around 1.2080/1.2100 mark.

Fundamental Outlook:

GBPUSD faced selling pressure on Friday and may continue as BREXIT fears return. As another round of negotiations between UK and the EU concluded on Friday, little or progress seem to have been made. The currency also faces uncertainty over rising tensions between the US and China amidst the ongoing COVID-19 crisis. The GBPUSD trades just above the 1.2100 mark as we write this article.

FTSE had closed lower by over -1.0% last week, as most Global Equities. The indice had dropped to 5635 lows on Thursday, before closing the week at 5907. Over the coming weeks, FTSE is expected to reel under further pressure as BREXIT fears return. As economies continue to re-open across the US and Europe, concerns remain over COVID-19 cases rising.

EURUSD might reel under further pressure as it continues to consolidate since printing highs at 1.1500 levels around mid-April. The minutes of ECB Monetary Policy meeting later this week shall be closely monitored to see if more stimulus would be required. Furthermore, a re-emergence of US-China trade war tensions could be a negative for EURUSD, as safe haven US Dollar would be back in demand.

Technical Analysis:

GBPUSD might have completed its first leg rally between 1.1414 and 1.2650 respectively. It is found to be correcting for now and might be close to forming an intermediary bottom around 1.2080/1.2100 levels. High probability remains for a rally towards 1.2430/50 levels before deciding further direction.

Structurally, we continue to favour a major bottom formation around 1.1414 levels earlier. The rally between 1.1414 and 1.2650 looks to be an impulse already, indicating further rally towards 1.3500, going forward. Also note that GBPUSD has dropped to fibonacci 0.382 retracement of previous rally and a bullish bounce remains high probability.

Most traders might be preparing to add fresh long positions around 1.2100 handle with risk at 1.1414 and potential targets above 1.3500 respectively.

Prepared by

Harsh Japee, Technical Analyst.

 

GBPUSD Chart

 


MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

 

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区,免费跟随高手做交易!

 

免责声明:本文系转载自网络,如有侵犯,请联系我们立即删除,另:本文仅代表作者个人观点,与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实,对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺,请读者仅作参考,并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权,非商业转载请注明出处。

本文来自网络,不代表迈投财经立场,转载请注明出处:http://www.myfxtop.cn/analysis/27065.html

为您推荐

联系我们

联系我们

在线咨询: QQ交谈

邮箱: myfxtop@hotmail.com

9:30 - 18:00/Mon-Fri
返回顶部