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Gbp-usd

GBPUSD: On the bearish threshold. Be ready to short it.GBPUSD is being rejected repeatedly at the top of the multimonth Channel Down but the 1D MA50 is still supporting it. However the squeeze has gotten to narrow and being on a neutral 1D technical setting (RSI = 50.057, MACD = 0.002, ADX = 25.323), we expect a bearish breakout soon below it. The similarities of the 1D RSI with last August, show that there is significant downside potential. We will short if we do get a 1D candle close under the 1D MA50 and target the S2 level (TP = 1.2230). See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
Short
by InvestingScope
Sell GBPUSD Bearish Channel GBP/USD has formed a bearish channel pattern on the H1 timeframe, indicating a potential for further downside. Pattern: The price has been making lower highs and lower lows within the channel, creating a downward sloping trend. Sell Entry: A break below the channel support at 1.2665 could be an opportunity to enter a short trade. Targets: Potential bearish targets lie at the support levels of 1.2558 and 1.2498. Stop Loss: A stop loss could be placed above the channel resistance at 1.2703. Factors Underpinning the Downward Pressure: Risk-Off Sentiment: Global markets are facing uncertainties, driving investors to seek refuge in safe-haven currencies like the US dollar. This has put downward pressure on the relatively riskier pound sterling. BoE Policy Divergence: The Bank of England is expected to raise interest rates at a slower pace than the US Federal Reserve, potentially widening the interest rate differential between the two economies. This could further weaken the pound against the dollar. Trading Considerations: Confirm Breakdown: Wait for a clear break below the lower boundary of the channel to validate the bearish momentum and potentially trigger sell trades. Manage Risk: Implement stop-loss orders above the resistance level to limit potential losses if the price unexpectedly reverses course. Monitor Fundamentals: Stay informed about economic data releases and central bank communications from both the UK and the US, as they can significantly influence the GBP/USD pair's trajectory.
Short
by KABHI_TA_TRADING
7
GBPUSD: Unraveling CPI Insights and Potential USD StrengthIn today's trading session, our focus is on GBPUSD, where we are monitoring a potential selling opportunity around the 1.27100 zone. The currency pair, which had been trading in an uptrend, has recently broken out and is currently in a correction phase, nearing the retrace area at the 1.27100 support and resistance zone. Adding a fundamental perspective to our analysis, let's delve into the recent Consumer Price Index (CPI) data. The numbers from previous months indicate a pattern of stable inflation, with the most recent CPI figures coming in at 3.4%, surpassing the forecasted 3.2% and showing a slight decrease from the previous month's 3.7%. This data suggests a relatively well-managed inflation scenario. Examining this from a broader economic standpoint, stable or slightly increasing inflation might contribute to a stronger US dollar. Investors and traders often view stable inflation positively as it reflects a healthy economic environment. The Federal Reserve, in such circumstances, might have room to consider tightening monetary policy, potentially leading to USD strength. Considering these fundamental factors alongside technical analysis, traders should carefully assess the potential impact on GBPUSD. As always, trade safe.
Short
by JoeChampion