GBP/USD Forms Bullish Triangle with Target at 1.25

29 Jan

The GBP/USD currency pair is having difficulty finding a decisive short-term direction and is fluctuating within a well-known trading range. Reduced bets on an imminent interest rate cut by the Bank of England support the British Pound (GBP) and provide some backing to the currency pair. Although the short-term technical outlook has yet to reveal a bearish momentum build-up, buyers may remain discouraged unless the pair manages to reclaim 1.2700. Positive macroeconomic data from the United States boosted the US Dollar (USD) during Thursday's American session. The Bureau of Economic Analysis (BEA) reported that the US Gross Domestic Product grew at an annual rate of 3.3% in the fourth quarter (first estimate). This exceeded market expectations for a 2% expansion and contributed to the USD outperforming its peers. The GDP report on Thursday showed that the Personal Consumption Expenditures (PCE) Price Index rose 2% on a quarterly basis in the fourth quarter, matching the previous quarter's increase and market expectations. Personally, I have speculated on a possible decline in the pound on the daily chart, highlighting a supply zone at the level of 1.271, which is a strong resistance point, and two closely spaced demand zones that could act as support between the levels of 1.256 and 1.259. Additionally, I have outlined two trendlines, one bearish and one bullish, forming an overall bullish triangle. Despite this, the price is currently at the upper side of the triangle. Therefore, in my opinion, it is ready for a descent towards 1.25, considering the support from the EMA21. The macroeconomic data this week will be interesting with the Fed in view, especially after the purchases of EUR and GBP in conjunction with the dollar seem to have been stagnant for over two weeks, a truly stalled market situation. Greetings and a good trading day to everyone from Nicola.

31 Jan

Nota

Price is mitigating and it is waiting the FED

1 Feb

Nota

After the fed the bearish sentiment persists, no waiting for the BOE