GBPUSD depreciates, will 1.2000 rescue the pair?
“Bank of England may slow down policy tightening pace as UK GDP fell during the second quarter.”
Pound sterling pared its gains post Bank of England policy meeting while investors gear up for the release of US Nonfarm Payrolls report. As expected, BoE raised interest rates by 50-basis points to 1.75%, its highest level since 2008. However, the market has fully priced in for the rate hike, prompting profit seeking selloff. In addition, BoE indicated that there is no forward guidance in terms of monetary policy, signaling possibility of policy tightening slowdown.
Quick recap of GBPUSD
Overall structure remains skewed towards the downside as the pair failed to make any substantial recovery.
GBPUSD Weekly Technical Analysis
While MACD shows diminishing upward momentum, the pair failed to push ahead past 1.2300.
GBPUSD Daily Technical Analysis
From daily perspective, the pair retraced from the downward trendline, an indication of takeover by the bear’s market.
ORDER: SELL STOP
STOP LOSS: 1.2070
Target 1: 1.1815
Target 2: 1.1685
ZFX Analyst’s Comment
The pair has failed to make any substantial recovery for the past few months, reinforcing the view of bearish tilted structure in the long run.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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