Does GBPUSD really discount?
Updated
Dear friends, currently GBPUSD is trading below the port level of 1.2300 after mixed employment data from the UK. This currency pair is trading higher by 0.08% on the day at 1.2286, as of the time of writing.
Regarding technical analysis:
- In the short term: We cannot anticipate a sharp decline in GBP and reaching a low of 1.2213 (we expected it to trade sideways). Although the sharp drop seems excessive, there is still a possibility for GBP to weaken further. Due to overselling, an extended drop below 1.2180 seems unlikely (the next support level is 1.2140). The resistance level is 1.2245, followed by 1.2270.
- Long-term perspective: Fjiolla wants to emphasize that currently GBP may trade within the range of 1.2180/1.2400. However, the short-term downward momentum has improved somewhat and the risk of GBP breaking below 1.2180 has increased. This indicates that there is another strong support level at 1.2140. In other words, an extended depreciation of GBP seems unlikely.
Regarding technical analysis:
- In the short term: We cannot anticipate a sharp decline in GBP and reaching a low of 1.2213 (we expected it to trade sideways). Although the sharp drop seems excessive, there is still a possibility for GBP to weaken further. Due to overselling, an extended drop below 1.2180 seems unlikely (the next support level is 1.2140). The resistance level is 1.2245, followed by 1.2270.
- Long-term perspective: Fjiolla wants to emphasize that currently GBP may trade within the range of 1.2180/1.2400. However, the short-term downward momentum has improved somewhat and the risk of GBP breaking below 1.2180 has increased. This indicates that there is another strong support level at 1.2140. In other words, an extended depreciation of GBP seems unlikely.
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