GBP/USD Undermined by Brexit-related concerns

The GBP/USD pair entered into consolidation mode below 1.1300 handle following Monday’s range because of the the absence of UK data and no-deal Brexit keeps weighing on the Pound. Additionally the BOE's policymaker McCafferty reaffirms Carney's rule of thumb of small rate hikes for the next couple of years.

Technically speaking the short-term outlook remains bearish. On the four hour time frame the price is developing well below its moving averages. RSI has slowed down around its 30 level and has lost directional strength. Stochastic is showing strong bearish momentum and is nearing the extreme oversold territory. 

Strong support is lying at 1.2920 (the weekly low), which if broken to below increases the risk for downward slump and marking fresh yearly lows.

GBP/USD Dovish BoE brought bearish sentiment

BoE raised its interest rate today for the second time since the financial crisis in 2008 amid a strong labor market, high inflation and growing concerns about Brexit. The Bank of England's nine-member monetary policy committee voted unexpectedly unanimously to raise the interest rate from 0.50 percent to 0.75 percent, which is the highest level since March 2009.
On this news the GBP/USD reacted with huge drop, losing 0.65% and marked daily low at 1.3045. The pair succeed to bounce from the low and currently is trading at 1.3058.
Technically speaking the short-term outlook remains neutral to bearish. On the four hour time frame the price is developing  below its slow bearish moving averages. RSI is showing strong downward momentum and is nearing 30 level. Stochastic has retreated from its extreme negative readings but has eased around 20.  
However to bring back the bullish mode the pair will need to fight first 1.3165 and next 1.3215 and eventually 1.3245. On the other hand bears will need to regain the 1.3000 handle in order to drive the pair down towards 1.2957 (the 2018 low).

GBP/USD At weekly highs

GBP/USD is trading higher today, up with 0.24% on Trump-Juncker meeting with expectations for positive outcome on trade war talks. Currently the pair is trading at 1.3175 having marked a weekly high. Technically speaking the short-term outlook remains neutral to bullish. On the four hour time frame the price is developing above its bullish 20-day and 50-day SMAs and below the flat 100-day SMA which is acting as a first support just few pips higher. RSI is located at 62 and is aiming north, while stochastic has turned to the downside although remains above its mid-line. Strong bullish bias will be confirmed only if the pair conquers 1.3200 handle with next target 1.3230. The downside remains supported by 1.3155 and lower at 1.3100.

GBP/USD Above 1.3200 on upbeat UK PMI data

GBP/USD is trading up with 0.11% at around 1.3208 today after excellent UK PMI numbers. The US  dollar is taking a break to celebrate the Independence Day and thus the Sterling received additional boost.
Technically speaking the short-term outlook remains neutral to bullish. On the four hour time frame the price is developing between its moving averages and currently is stuck between the flat 50-day and 100-day SMA and daily low coincides with the bullish 20-day SMA. RSI is located slightly above its mid-line and is aiming south. Stochastic is seen within extreme oversold area and is also starting to turn bearish.
The 1.3215 – 1.3220 zone now is acting as first resistance and in case if broken next bullish target is seen at the 1.3300 hurdle. On the other hand the today’s up move is not sustainable having the readings on the same chart. Immediate support is provided by the 1.3160 level which is broken, we may expect the downfall to continue towards 1.3100 handle.

GBP/USD Bulls eye 1.3200

GBP/USD is recovering from the yearly lows posted yesterday, building stable upward move the 1.3100 handle. The Sterling received good boost by the upward revision of the UK GDP growth for Q1 against the greehback’s corrective slide, adding fuel to the bullish sentiment. Currently the pair is 1.3165, up with 0.67% for the day.
Technically speaking the short-term outlook remains neutral to bullish. On the four hour time frame the price is developing above its bearish moving averages but crossing to above the 20-day SMA. RSI and stochastic are showing strong bullish momentum above their mid-lines.
The buying interest might push the pair even higher from the current levels. A breakthrough the 1.3200 hurdle will open door for testing the resistance zone around 1.3230. Looking to the downside the pair remains supported by 1.3120 and lower by the key level at 1.3100.

GBP/USD Bearish pressure below post-BoE's level

During the last week the GBP/USD pair marked highest level 1.3314 but closed almost unchanged at 1.3265. BoE surprised markets with its hawkish stance along with the change in the MPC vote, having 3 of 9 votes for rate hikes. Meanwhile the latest release of Brexit drama will probably weigh on the Sterling at tomorrow’s opening.

Technically speaking the short-term outlook for the pair remains neutral to bearish. On the four hour time frame the price is developing between its moving averages with current price in line with the 50-day SMA. The latest recovery was stalled by the 100-day SMA, which shows its corrective attitude. RSI has lost directional strength around its’s mid-line. Stochastic is showing strong bearish momentum and is nearing oversold territory.  

The last week’s low on post-BoE's decision is providing first support at 1.3240 with is broken to below will increase the bearish pressure and will lead the pair towards  1.3205 – 1.3170.

GBP/USD Bearish pressure ahead of BoE

The GBP/USD is trading with 0.2% down today at around 1.3150 area ahead of Bank of England's rate call. It is widely expected that the central bank will keep rates unchanged at 0.50% and the volume of asset purchasing, but the sound of the statement will rule the Sterling’s direction.

Technically speaking the short-term outlook remains neutral to bearish. On the four hour time frame the price is developing well below its bearish 20-day and 50-day SMAs and flat 100-day SMA.

RSI is looking for direction around its 40 level. Stochastic is showing strong downward slope and has entered into extreme oversold area.

In the early London session the pair hit a fresh 2018 low at 1.3145, few pips below the current market price. The bearish pressure remains high and a downward acceleration through this point will serve the 1.3000 zone as next bearish target.

The British bears are rolling in the deep

Druging the past two weeks the Cable was developoing above the crytical suppor area at 1.3500 but even the uplifted mood that brought the royal wedding couldn’t keep it over there until today. This mornign the USD/GBP pair plummeted and pinned fresh new 2018 low at 1.3390 as a new episode from the Brexit saga was released. The bearish break was fueled by the that Scottish Prime Minister Nicola Sturgeon who  pledged to restart a drive for Scottish independence.

As seen on the four hour time frame the price abandoned its latest range and now is developing well below its bearish moving averages. RSI and stochastic are starting to bounce from their lowest levels but yet remian below their mid-line and seems taht are looking for direction.

However the British bears are now ruling the trend. Breaking the key support at 1.3500 is of significant importance as this is a historical level, being attarating the bears since January 2009. So from here we might expect test of 1.3320 area and the creation of new yearly low.

GBP/USD Consolidating ahead of BoE’s decision

The GBP/USD pair bounced modestly from the multi-month lows at 1.3480 but yet bulls are not strong enough to reverse the trend despite the US dollar lost ground after Trump's decision to withdraw from the Iranian nuclear deal. Technically speaking the short-term outlook remains neutral to bearish. On the four hour time frame the price is developing below its 100-day and 200-day SMAs, although is trying to break above the 20-day SMA, which is also bearish. RSI escaped from the oversold area but yet remains below its mid-line. Stochastic is giving initial sighs for U-turn and currently is located at 40. The limited upward potential can not offer much, so the GBP/USD pair is more likely to remain in consolidation phase within tight range between 1.3480 and 1.3600 until BOE's decision on Thursday. 

Cable is under pressure

GBP/USD dropped below the 1.4300 handle after having posted a fresh multi-month high at 1.4375 . The macro agenra today served disappointing UK earnings numbers which contributed to the suffering of the Sterling.

During the last two weeks the Cable performed excellent and rallied from 1.3965 to 1.4375 (the intraday high) and during this period we witnessed higher highs and higher lows. 

Technically speaking the short term outlook remain neutral to bearish. On the four hour time frame the price is developing above its moving averages, having bullish 20-day SMA and slow turning to flat 100-day and 200-day SMAs. RSI has eased its downward slope and currently is located at 58, having a break to look for direction. Stochastic is showing strong bearish momentum and is nearing oversold territory.

As seen on the same chart the pair continues falling and surpassed last week’s high at 1.4344 which brings a signal for deeper pullback.

On the other hand, dips could be limited as Sterling remains backed up by the expectations of BoE’s rate hike on policy meeting next month.

However the pullback could meet strong support at 1.4244 (late March’s highs) and ex long term resistance that should keep intact overall bulls.

Tomorrow will bring the next key event for the Cable with the release of UK inflation data which could provide fresh direction signal.

GBP/USD On a new channel to the upside

GBP/USD broke key levels and is nearing 1.4000 hurdle as the US dollar started to slide after the US inflation figures and the following political jitters on the replacement of the Secretary of State.

Thereupon and the lack of macro events in UK for tomorrow is uplifting the Cable to its highest level in over two weeks. The UK bulls were seen flirting with the 1.40 level but obviously are a little bit hesitant as currently the pair is trading at 1.3967.

Technically speaking the short term outlook remains bullish. On the four hour time frame the price is developing within an ascendant channel, having stalled close to the upside of it. Also the pair succeeded to cross to above its moving averages, which are looking for direction. RSI and stochastic are located within strong overbought areas but both are strating to lose strength. 

Given all above the Cable is likely to push above 1.4000 and just technically this point converges with the upper side of the channel.