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GBP/USD Forecast: Seems poised to gains further, focus shifts to Brexit negotiations

The GBP/USD pair lacked any firm directional bias on the first day of a new week and seesawed between tepid gains/minor losses, around the 1.3100 mark. Sustained US dollar selling bias, coupled with improving sentiment around the upcoming Brexit talks extended some support to the major. It is worth recalling that Britain’s chief negotiator David Frost had said last Thursday that a Brexit agreement can be reached in September, which was seen as one of the key factors underpinning the British pound. On the other hand, the USD remained depressed amid the uncertainty over the next round of the US fiscal stimulus measures. Adding to this, sliding US Treasury bond yields and the upbeat market mood further weighed on the already weaker greenback.

The USD bulls failed to gain any respite from Monday’s release of the Empire State Manufacturing Index, which tumbled to 3.7 in August from the 17.2 previous and missed consensus estimates by a big margin. Read More…

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GBP/USD outlook: Fresh advance brings 2020 high in focus

Rally off 1.30 zone, where a higher base is forming, accelerates on Tuesday (the pair is up 0.5% since today’s opening) and pressures 6 Aug high at 1.3185.
Rising fears over US elections add pressure to the greenback and inflate pound, which faces increased volatility as EU/UK trade talks resumed.
Firm break of 1.3185 is need to signal an end of consolidation phase and signal bullish continuation through 1.3199/1.3209 (9 Mar/31 Jan highs) that would expose 2020 high at 1.3265 (2 Jan). Bullish daily techs support the advance while weekly studies point to stronger advance that could extend towards Dec 2019 peak at 1.3514. Bull-cross of 5/10DMA’s offers solid support at 1.3087, guarding key 1.30 level. Read More…

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GBP/USD technical analysis – Appreciates, targeting durable resistance border

GBPUSD is in the process of re-examining the toughened resistance zone from 1.3185 – 1.3211, which has been keeping advances at bay. The strengthening 50- and 100-day simple moving averages (SMAs) and the recent bullish crossover of the 200-day SMA by the 50-day one, suggest further gains may unfold.

Glancing at the short-term oscillators, they reflect a pickup in positive momentum. The MACD, some distance in the positive region, is holding below its red trigger line and appears it could repossess it. The RSI has returned to overbought territory, while the positive stochastic oscillator is approaching the 80 mark. Nevertheless, positive momentum would need to endure around overbought levels to sustain a climb. Read More…

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