British Pound Forecast: GBP/USD Pending Breakout
British Pound Outlook: GBP/USD
GBP/USD seems to be reversing ahead of the 50-Day (1.2786) as it pares the decline from earlier this week, but the advance from the monthly low (1.2616) may continue to unravel as the Bank of England (BoE) is expected to deliver a rate-cut.
British Pound Forecast: GBP/USD Pending Breakout
GBP/USD holds above the weekly low (1.2807) even as the Federal Reserve keeps US interest rates in its current threshold of 5.25% to 5.50%, and the exchange rate may attempt to break out of the range bound price action should it track the positive slope in the moving average.
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GBP/USD Price Chart –Daily
Chart Prepared by David Song, Strategist; GBP/USD on TradingView
- GBP/USD seems to be trading in a narrowing range, but the exchange rate may track the positive slope in the 50-Day SMA (1.2786) amid the string of failed attempts to push below the 1.2760 (61.8% Fibonacci retracement) to 1.2830 (23.6% Fibonacci retracement) zone.
- Need a close above the 1.2900 (23.6% Fibonacci retracement) to 1.2910 (50% Fibonacci extension) region to bring 1.3010 (61.8% Fibonacci extension) on the radar, with a breach above the monthly high (1.3045) opening up the 1.3140 (78.6% Fibonacci extension) to 1.3150 (23.6% Fibonacci extension) area.
- However, failure to hold above the 1.2760 (61.8% Fibonacci retracement) to 1.2830 (23.6% Fibonacci retracement) zone may push GBP/USD towards 1.2710 (23.6% Fibonacci extension), with the next area of interest coming in around 1.2630 (38.2% Fibonacci retracement).
Additional Market Outlooks
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--- Written by David Song, Strategist
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