GBP/USD Upward Movement to 1.25!

7 thg 11, 2023

On Tuesday, the GBP/USD exchange rate faced renewed downward pressure, falling towards the 1.2250 level. This decline was driven by the ongoing recovery of the US Dollar, supported by rising Treasury yields, despite positive movements in Wall Street. The GBP/USD exchange rate was last seen trading near 1.2300, where it encountered a key resistance zone marked by the 38.2% Fibonacci retracement level from the latest downward trend and the 20-period Simple Moving Average (SMA) on the 4-hour chart. If the exchange rate falls below this level and confirms it as resistance, we may witness further losses towards 1.2260 (static level) and 1.2200 (23.6% Fibonacci retracement level and the 50-period SMA). During Tuesday's European session, the GBP/USD exchange rate faced pressure and dropped into the 1.2300 region. The short-term technical outlook for the exchange rate suggests a bearish stance. In the absence of significant data releases, market sentiment and risk perception could play a crucial role in GBP/USD performance in the second half of the day. After reaching its highest level since mid-September at 1.2428 on Monday, the GBP/USD exchange rate reversed direction and closed in negative territory. The rebound in US Treasury bond yields increased demand for the US Dollar (USD) and prevented the exchange rate from holding onto previous gains. Earlier in the day, UK house price data revealed a 1.1% monthly increase in October, but this publication did not trigger a significant market reaction. Furthermore, the price retraced precisely to the 0.62 Fibonacci level, and now I personally expect a rebound to 1.23, where we have a supply zone, followed by a slight pullback and then a rise to 1.25. Let me know what you think. Happy trading to all, greetings from Nicola, the CEO of Forex48 Trading Academy.