GBP/USD Daily: Retrieving from 50% Fibonacci level while remaining above the Ichimoku Cloud.
Technical Analysis
Who’s da Man? Invest Diva! As per my forecast last week, Mr. British Pound reached our target of 1.58 and is now testing this important resistance level. A break above 50% % Fibonacci could back up Mr. British Pound’s recent boundary breaking moves and open new door for more rallies on the forex dance floor. The RSI is heading down from the overbought zone.
Fundamental Points
Economic factors back up the recent climbs of Mr. British Pound on the forex dance floor. Wage growth in the UK has picked up and there has been a rebound in the UK inflation. With this, Bank of England (BoE) might gain confidence and actually move towards a rate hike next year, which again, could lead to more jumps of joy for Mr. Pound.
Trading Idea
We are getting missed signals this very moment so stay tuned for my next update!
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 1.5180 | 1.5560 | 1.58 |
| 1.49 | 1.5867 | 1.6175 |
*Important Note: The support and resistance levels are not suitable for all traders and largely depend on your account size, margin and leverage. Book a private lesson to learn how to personalize your account based on our trading guide.
