Double confirmation, GBPUSD bound to depreciate?
“GBPUSD give in to bears as data shows rate hike conundrum.”
Pound sterling met with fresh supply as investors react towards last week’s soft data from the UK. For the second quarter and last month respectively, both GDP and Manufacturing Production came shrank, albeit above consensus forecast. Evidently, both data casts hardship upon Bank of England as they try to combat inflation and at the same time, balanced out with the current economic situation. For the week ahead, investors will pay attention to UK’s employment report as well as Federal Reserve’s meeting minutes to gauge market sentiment.
Quick recap of GBPUSD
All in all, the pair continues to remain skewed towards the downside as its bearish structure remains intact.
GBPUSD Weekly Technical Analysis
In weekly perspective, the pair fails to extend its recovery albeit bullish signal portrayed by MACD.
GBPUSD Daily Technical Analysis
The pair failed to overcome downward trendline twice, confirming immense selling pressure from the upside.
Trading Idea
ORDER: SELL STOP
ENTRY: 1.1955
STOP LOSS: 1.2095
Target 1: 1.1800
Target 2: 1.1700
ZFX Analyst’s Comment
The pair failed to extend its recovery twice, staging the course for further downside ahead. Nearest support at 1.2000 would be the key level to obtain bearish tilted confirmation.
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