GBP/USD DOWN TREND CONFIRMED
Quick and simple analysis on GBP/USD.
Fundamental Analysis:
Last week the pound took a hit due to the bank of England keeping interest rates the same (.25%) whilst having a dovish outlook on the economy. We also had the U.S Dollar gain some strength since Friday with N.F.P coming out positive for the dollar (209K) and unemployment rate coming out .1% less than pervious, this has shown us based of fundamental the dollar should gain strength over the pound.
Technical Analysis:
GBP/USD has broken through and retested my monthly resistance of 1.31630 and made its way to 1.30243.
i am looking for a retracement level of 61.8% which lines up with my 4hr support 1.31126 soon to become resistance if the market respect that level. There is a lot of confluence around that price level so lets see how it plays out :)
Fundamental Analysis:
Last week the pound took a hit due to the bank of England keeping interest rates the same (.25%) whilst having a dovish outlook on the economy. We also had the U.S Dollar gain some strength since Friday with N.F.P coming out positive for the dollar (209K) and unemployment rate coming out .1% less than pervious, this has shown us based of fundamental the dollar should gain strength over the pound.
Technical Analysis:
GBP/USD has broken through and retested my monthly resistance of 1.31630 and made its way to 1.30243.
i am looking for a retracement level of 61.8% which lines up with my 4hr support 1.31126 soon to become resistance if the market respect that level. There is a lot of confluence around that price level so lets see how it plays out :)
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