empty
 
 
24.09.2021: Forex Analysis & Reviews: GBP/USD sellers still in the game

GBP/USD dropped aggressively today because the Dollar Index has rebounded. The pair is traded at the 1.3679 level far below 1.3750 yesterday's high. Unfortunately, the UK Gfk Consumer Confidence dropped further from -8 to -13 points, though traders have expected to see a potential growth to -7 points.

In addition, CBI Realized Sales was reported lower at 11 points versus 35 expected and compared to 60 points in the previous reporting period. Fundamentally, the USD remains strong after the hawkish FED and despite some poor data reported yesterday from the US economy.

Today, the New Home Sales indicator has come in better than expected which may have a positive impact on the US Dollar.

GBP/USD strong sell-off

analytics614e075bee2f8.jpg

GBP/USD failed to approach and reach the Ascending Pitchfork's median line (ml) signaling strong pressure. Now, it has found temporary support on the weekly S1 (1.3662). The Ascending Pitchfork's lower median line (lml) is seen as support as well.

Technically, the pair is trapped between the 1.3891 and 1.3602 levels. Personally, I want to see a strong bullish pattern around the current levels or lower on the lower median line (lml) to consider going long.

Yesterday's rebound was only a temporary one. GBP/USD is likely to move sideways in the short term before really developing a strong move up or down.

GBP/USD forecast

Testing and retesting the lower median line (lml) could signal potential growth. The pair may still increase as long as it stays within the Ascending Pitchfork's body. The level of 1.3602 is seen as critical support, so only a valid break below it may signal a further downside movement.

A false breakout with great separation below the lower median line (lml) or a major bullish engulfing printed on this line may bring new long opportunities.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS
Can't speak right now?
Ask your question in the chat.
Widget callback