GBPUSD thread water, waiting for next major market mover.
“Greenback enters into correction while other major currencies stood still to wait for further signals.”
GBPUSD is seemingly quiet today while investors wait for the imminent release of key economic data from UK as well as Bank of England’s Treasury hearing session. Yesterday, greenback enters into corrective mode after propelling significantly over the backdrop of bullish Nonfarm Payrolls data. The data cemented the course for more rate hikes as job growth remains resilient despite aggressive policy tightening from the Fed.
Quick recap on GBPUSD
The pair experienced significant correction following prior retracement from 1.2460.
GBPUSD Weekly Technical Analysis
From weekly perspective, MACD shows significant reduction in upward momentum, suggesting further downside ahead.
GBPUSD Daily Technical Analysis
In terms of daily perspective, GBPUSD threads lower after forming double top formation with neckline at 1.1950.
ORDER: SELL STOP
STOP LOSS: 1.1880
Target 1: 1.1700
Target 2: 1.1600
ZFX Analyst’s Comment
Overall, as weekly’s momentum shows possible extension towards the downside, a close below the neckline will provide as a confirmation.
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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