GBPUSD | Perspective for the new week | Follow-up
Updated
On Friday, GBP/USD saw a modest rebound post-testing 1.2600. The US Dollar is struggling to maintain its strength following the release of weaker-than-expected ISM Manufacturing PMI data from the US.
February's US ISM Manufacturing PMI dropped to 47.8, contrary to the anticipated rise to 49.5 from the previous month's 49.1. The diminishing PMI sentiment is fueling expectations for potential rate cuts by the Fed. These expectations are further reinforced by the Fed's recent Monetary Policy Report, where they reiterated their belief that inflation is gradually moving towards the upper end of the 2% target band.
While economic data from the UK remains scarce this week and the next, focus will shift to the US labor data next week. The upcoming week will feature the Services component of the ISM PMI figures on Tuesday, a preview of the ADP Employment Change for February on Wednesday, and will culminate with the release of the US Nonfarm Payrolls (NFP) report at the end of the week.
GBPUSD Technical Analysis:
Will the pound continue its trajectory and sustain its momentum above the $1.26700 zone?
The spotlight is on high-impact economic events from the US docket for clues. Brace yourselves as the anticipation and the actual events may trigger sharp price movements that could present incredible trading opportunities.
In this video, we've analyzed the 4-hour timeframes, exploring bullish and bearish sentiments to uncover the most promising trades for the week ahead. We've delved into key levels, trendlines, and support/resistance points, unveiling essential insights into the current market structure.
We are keeping a close eye on the potential range between $1.26000 and $1.27000 where a breakdown or breakdown could incite the next BIG move. It's a decisive structure where both sellers and buyers will be vying for control, and how the market reacts here will set the course for GBPUSD in the upcoming days.
Stay connected and join the conversation in the comment section to stay updated on the latest developments. Thank you for tuning in, and get ready for more enlightening insights into GBPUSD in our upcoming content. Buckle up for a thrilling journey ahead! Happy trading!
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
February's US ISM Manufacturing PMI dropped to 47.8, contrary to the anticipated rise to 49.5 from the previous month's 49.1. The diminishing PMI sentiment is fueling expectations for potential rate cuts by the Fed. These expectations are further reinforced by the Fed's recent Monetary Policy Report, where they reiterated their belief that inflation is gradually moving towards the upper end of the 2% target band.
While economic data from the UK remains scarce this week and the next, focus will shift to the US labor data next week. The upcoming week will feature the Services component of the ISM PMI figures on Tuesday, a preview of the ADP Employment Change for February on Wednesday, and will culminate with the release of the US Nonfarm Payrolls (NFP) report at the end of the week.
GBPUSD Technical Analysis:
Will the pound continue its trajectory and sustain its momentum above the $1.26700 zone?
The spotlight is on high-impact economic events from the US docket for clues. Brace yourselves as the anticipation and the actual events may trigger sharp price movements that could present incredible trading opportunities.
In this video, we've analyzed the 4-hour timeframes, exploring bullish and bearish sentiments to uncover the most promising trades for the week ahead. We've delved into key levels, trendlines, and support/resistance points, unveiling essential insights into the current market structure.
We are keeping a close eye on the potential range between $1.26000 and $1.27000 where a breakdown or breakdown could incite the next BIG move. It's a decisive structure where both sellers and buyers will be vying for control, and how the market reacts here will set the course for GBPUSD in the upcoming days.
Stay connected and join the conversation in the comment section to stay updated on the latest developments. Thank you for tuning in, and get ready for more enlightening insights into GBPUSD in our upcoming content. Buckle up for a thrilling journey ahead! Happy trading!
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Trade active
Price action has just broken out of the week's key level identified in our recent video, triggering our first buy position for the week. As discussed in the video, we anticipated a breakout/retest of the key level at 1.26700, which would present favorable buying opportunities. The Pound Sterling gains value as it builds upon Friday's rebound. This upward momentum may have been supported by the hawkish remarks from the Bank of England (BoE) Chief Economist, Huw Pill, who suggested that the first interest rate cut is not imminent.
On the other side of the pond, the US Dollar remains under pressure following disappointing macroeconomic data from Friday and less hawkish comments from Federal Reserve (Fed) officials. Additionally, the recent risk-on sentiment in global equity markets has further dampened the appeal of the US Dollar, thereby providing some support to the GBP/USD pair.
In light of these developments, we will focus on the newly identified structures on the 1-hour timeframe to guide today's trading activities. These structures will serve as our compass as we navigate the market.
Good Morning
Trade active
UPDATEA minimum of two buy positions are triggered as the Pound Sterling builds upon Friday's rebound; Protect all positions as we look out for new trading opportunities.
Trade active
UPDATEAnother position triggered at the break of $1.26700 level; secure more positions
Trade closed manually
All buy positions have been closed with some profit as the GBP/USD experiences a slight downturn amidst the US Dollar's modest recovery. Technically, the bullish outlook for GBP/USD remains intact; however, the focus now shifts to how the bearish momentum will unfold.In anticipation of today's trading session, market participants eagerly await economic indicators from both economies to provide fresh momentum. Notable among these are the UK BRC Like-For-Like Retail Sales for the year ending February, expected to show a 1.6% year-on-year increase compared to the previous 1.4%. On the US front, Tuesday's highlight is the ISM Services Purchasing Managers Index (PMI) for February, forecasted to dip slightly to 53.0 from the previous month's 53.4.
In this context, the identified levels on the chart continue to guide our decisions.
Good Morning
Trade active
Despite the recent pullback, the bullish outlook remains strong as market participants are waiting to hear from UK Chancellor Jeremy Hunt about the government's plans for taxes and spending, especially with a general election coming up. There's talk that Hunt might lower the amount of money employees have to pay for national insurance, similar to what was announced last autumn.The US dollar may be facing selling pressure in reaction to the US ISM Services Purchasing Managers Index showing weaker-than-expected results.
In the UK, retail sales for February didn't meet expectations. Later today, we'll get more information on the UK's economic performance with the release of the S&P Global/CIPS Construction PMI for February.
At this juncture, Market participants will be keeping an eye on the Federal Reserve Chairman's testimony to the US Congress and the ADP Employment Change report for February, both happening today for more insight into the US economic situation. In this regard, I strongly believe in an uptrend continuation unless the structure states otherwise.
Good Morning
Trade closed manually
#GBPUSDBuy positions closed. Bull bias still maintained!
Trade active
The GBP/USD pair continues its upward momentum, breaking above the 1.27330 barrier and maintaining a bullish outlook. This rise is supported by a weaker US Dollar and positive news from the UK Spring Budget.During his testimony to House lawmakers, the Federal Chair hinted at potential interest rate decreases this year. However, he emphasized the Fed's cautious approach, stating they'll closely monitor inflation before making any moves.
In the UK, Chancellor Jeremy Hunt presented the spring budget, acknowledging the challenges faced by the economy due to the financial crisis, pandemic, and European war's energy crisis. Hunt mentioned that interest rates will stay high to combat inflation. Additionally, he forecasted stronger economic growth for 2024 and 2025 compared to previous estimates.
These optimistic remarks and the narrative of higher interest rates in the UK supporting the Pound Sterling (GBP) may push the GBP/USD pair higher.
Looking ahead, investors will watch for US weekly Initial Jobless Claims and Trade Balance data, along with Chair Powell's second testimony and a speech by Fed's Mester.
Considering these factors, we'll keep an eye on the ascending trendline for guidance in today's trading.
Good MOrning.
Trade active
We've got three new buy positions that are currently making a profit of over 180 pips as the GBP/USD pair extends it's winning streak to a three-month high. This bullish momentum comes as the US Dollar stays subdued and investor confidence improves.At this juncture, market participants might hold off on making new trades as they wait for the important US Nonfarm Payrolls data today for fresh impetus.
During the Federal Reserve Chair's presentation of the Monetary Policy Report and answer questions from the Senate Banking Committee. He mentioned that interest rate cuts could happen sooner rather than later if inflation stays under control, but he didn't give a specific timeline.
Meanwhile, the financial markets are expecting the Bank of England (BoE) to follow the Fed's lead and lower interest rates. This expectation is boosting the Pound Sterling (GBP) and helping the GBP/USD pair.
With all eyes on the US Nonfarm Payrolls, Unemployment Rate, and Average Hourly Earnings data scheduled for today, we might see some volatility and choppy market conditions. It's important to protect all our buy positions in anticipation of these movements while using the structures identified on the chart as a guiding light for today's trading activities.
Good Morning
Trade active
UPATEProtect all positions as we look out for new trading opportunities
Trade smart. Trade consciously
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