(MENAFN- Daily Forex) Bullish view
Buy the GBP/USD pair and set a take-profit at 1.3045. Add a stop-loss at 1.2950. Timeline: 1-2 days.
Bearish view
Set a sell-stop at 1.2985 and a take-profit at 1.2900. Add a stop-loss at 1.3050.
The GBP/USD pair's rally gained steam this week ahead of important statements by
bank of England (BoE) and
federal Reserve officials at the Jackson Hole Symposium. It is in the second consecutive week of gains and was trading at 1.3000 on Tuesday, its highest level since July this year.
There will be no major economic data from the US and the UK this week. Therefore, traders will continue to focus on the upcoming Federal Open Market Committee (FOMC) minutes on Wednesday. In the past, these minutes have led to major movements in the forex market since they provide more details of the previous meeting.
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The other important event will be the Jackson Hole Symposium in the US. In it, central bank officials like BoE's Andrew Bailey and Fed's Jerome Powell will talk. Most attention will be on Powell, who will likely confirm that the bank will start cutting rates in September. With that view priced in, it is unlikely that the GBP/USD pair will have major moves.
The GBP/USD pair has also risen after the strong UK GDP numbers released last week. These numbers revealed that the economy was doing well, with retail sales booming/USD weekly technical analysis
The GBP/USD exchange rate continued rising this week as the US dollar index retreated. It rose to a high of 1.300 as it neared the important resistance point at 1.3038, its highest point this year. That resistance point was also the upper side of the ascending triangle pattern. In technical analysis, this is one of the most popular bullish patterns,
The pair has moved above the 50-week and 25-week Exponential Moving Averages (EMA) and 61.8% Fibonacci Retracement point. The RSI has remained above 50 since June. Therefore, the pair will likely continue rising, with the next reference point to watch being at 1.3134, its 2023 high/USD 4h analysis
On the 4H chart, the pair has soared from a low of 1.2665 on August 8 to the psychological point at 1.300. It has moved to the upper side of the Bollinger Bands and crossed the important support at 1.2950.
The pair's oscillators like the Stochastic Oscillator and the RSI have all moved to the overbought point. Also, the pair has reached the extreme overshoot level of the Murrey Math Lines tool.
Therefore, it will likely continue rising as bulls target the key point at 1.3045, its highest level on July 17.
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