Technical Articles

GBP/USD Pushes past 1.3500 major level

 
Posted on 18/09/2017

GBP/USD: After the GBP accelerated past all short-term projections making its highs at 1.36180, we now rest around the monthly key level of 1.3500. The daily closure will help determine the next move on this pair. Although the weekly price action suggests rapid and bullish momentum, we may in fact see the price retrace before going higher. If the price dips below 1.3500 soon, it may well come and re-test the 1.33500 regions before making its next move. With announcements from Bank of England Governor Mark Carney on Monday morning, where Mr. Carney reiterated that interest rate hikes were likely in the coming months if the economy and price pressure keeps improving, there is potential for a stronger sterling before the end of the year. During the week commencing on Monday, September 18, be aware that we may experience market volatility for GBP/USD as the Federal Open Market Committee two-day meeting culminates in a Fed interest rate decision on Wednesday. 

 

Previous:- After breaking back above 1.3000, this pair had a significant acceleration to the upside and yesterday broke past 11-month highs of 1.32500. This move came shortly after British Consumer Price Index (CPI) data was released, showing better-than-expected inflation figures in the UK. Within just eight days, we have witnessed a 300 PIP bullish climb for this pair, and we now expect our daily level of 1.33500 as our next resistance barrier. The GBP could see 1.3500 in the near future, at a quicker pace than expected. Especially if the Bank of England decides to increase interest rates from 0.25% to 0.5% sooner than later. However, if the announcement is dovish in any way and the interest rate remains at 0.25%, we may, in fact, see the pair still in its overall bullish rally. 

 

 

 

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