GBP/USD Price Analysis: Struggles with 1.2495 and loses 100 pips as bears regain control

Get real time updates directly on you device, subscribe now.

  • GBP/USD posts losses of 0.98%, paring almost all of Tuesday’s gains.
  • UK inflation rises to 9%, up from 7% in the previous month.
  • GBP/USD Price Analysis: Still bearish bias and could retest year lows around 1.2155.

The GBP/USD it breaks three days of gains and lost nearly 1% during Wednesday’s session on a subdued mood in financial markets, even though reported UK inflation was higher than expected. At 1.2365, GBP/USD reflects a drop of more than 100 pips and almost a full reversal move since Tuesday.

Sentiment remains negative, another factor to consider when trading the British pound. Due to its status as a risk sensitive currency, when sentiment is negative, traders look to safe-haven pairs such as the dollar and yen. In addition, the pound sterling was affected by the high inflation figures and, according to the Bank of England, it could reach double digits throughout the year. This, together with the rise in rates by the central bank and lower growth, threatens to lead the British economy into stagflation. Consequently, the pound’s outlook looks cloudy and it could weaken further to May 2020 lows around 1.2080.

During the Asian session, GBP/USD opened near the highs around 1.2490 and tumbled when UK inflation was released, posting a new daily low around 1.2360.

GBP/USD Price Forecast: Technical Outlook

GBP/USD continues to have a bearish bias. The rally from year lows around 1.2150 was short-lived, and GBP/USD’s failure to recapture the July 2020 swing low turned resistance at 1.2479 exposed the major currency to further selling pressure. . Also, the slope of the MACD line is “almost” horizontal, which means that it could cross below the signal line, pointing lower, indicating that GBP/USD could extend its losses.

That said, the first GBP/USD support would be the May 17th daily low at 1.2315. A break below would expose the June 2020 lows around 1.2251, followed by the year’s low at 1.2155.

Technical levels

GBP/USD

Panorama
Last Price Today 1.2419
Today’s Daily Change -0.0074
Today’s Daily Change % -0.59
Today’s Daily Opening 1.2493
Trends
20 Daily SMA 1.2517
50 Daily SMA 1.2868
100 Daily SMA 1.3188
200 Daily SMA 1.3382
levels
Previous Daily High 1.2499
Previous Daily Minimum 1.2316
Previous Maximum Weekly 1.2406
Previous Weekly Minimum 1.2155
Monthly Prior Maximum 1.3167
Previous Monthly Minimum 1.2411
Daily Fibonacci 38.2% 1.2429
Daily Fibonacci 61.8% 1.2386
Daily Pivot Point S1 1.2373
Daily Pivot Point S2 1.2253
Daily Pivot Point S3 1.2191
Daily Pivot Point R1 1.2556
Daily Pivot Point R2 1.2619
Daily Pivot Point R3 1.2739

Advertisement

Source: Fx Street

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

www xxx xxx video tube freeproncom filmsex hindi xxxvdo xxx hd
buy kamagra buy kamagra online $255 payday loans online same day no denial payday loans direct lenders only