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Gbpusdidea

GGBP/USD is challenging its strong support zone. Will it bounce?After breaking below the trendline support, what bit confirmed that the GBP/USD will test its significant support level, and it happens. Now the question is will GBP/USD bounce from the strong support level? We have seen gold and oil didn't respect any substantial resistance. EUR/USD is falling apart and not the following support as well. So, can GBP/USD respect the support zone and bounce? From my view, GBP has 50/50 chances. As long as GBP/USD is above 1.3150, I believe that GBP/USD will bounce nearly 1.3350 zones. After that, if the Russia-Ukraine war turns into a more critical situation or if GBP/USD breaks below the 1.3150 zones, it has a big room to drop till 1.2800. So, I suggest you put one sell limit order at 1.3350 or sell after a breakout at 1.3150. Our first target to the downside is 1.3000, and the final target is 1.2800. Remember: as long as the Russia-Ukraine war exists, we should not buy GBP and EUR. As commodities prices rise, commodities currencies are rising like AUD, NZD, and CAD. Otherwise, they would also drop. Please like, comment, share, follow, and join me if you like my analysis.
by Gold_Trading_Expert
3
GBPUSDThe British pound has tried to rally during most of the month of February but continues to find quite a bit of resistance above. I believe that sometimes the market screams at you, and other times it starts to whisper. As things stand currently, it looks like a sideways market that is struggling to break above the top of a trendline. However, the market may be whispering that it simply does not have the momentum to go higher. I believe that if this market breaks down below the 1.35 level on a daily close, that may kick off fresh selling. Both central banks are rather hawkish at the moment and therefore people are struggling to price in a differential when it comes to interest rate hikes. After all, monetary policy being tied out of both countries tends to favor both currencies, and you are currently seeing a fight between two relatively strong currencies. This is much clearer when you look at the way the GBP/JPY and GBP/NZD pair behaves, right along with the USD/JPY, and the AUD/USD pair. In other words, you see overall strength in both of these currencies against others. Another problem that you may have with this market is that recently we have seen a flight back to the carry trade when traders buy one currency and sell another in order to pick up the interest rate differential. There is not much of a differential here, so there is no carry trade blowing it in one direction or the other. However, there is one thing that could come out and really get this market moving, and that would be the fear trade. If that is the case, the US dollar will win hands down. Alternately, if we do see this market break above the downtrend line on the chart and perhaps more importantly the 1.37 handle, you could see the British pound really start to take off. At that point in time, it becomes more of a “buy-and-hold scenario”, where we perhaps go as high as the 1.42 level over the longer term. As things stand right now, it is hard not to notice that there are long wicks above the weekly candlesticks for the entire month of February. It certainly looks as if it is starting to “lean to the downside.” Because of this, I will be paying very close attention to the 1.35 handle.
Short
by SmoothJB
GBP/USD Sell Opportunity: Breaks Below The Trendline Support.Hello GBP/USD traders, welcome back again. GBP/USD has closed its candle below the trendline support that has created chances to test one more time 1.3200 price zone. Last week BoE delivered a dovish statement, and Russia-Ukraine issues have created high demands of the safe-haven USD one more time. After breaking below the 1.3490 price zone yesterday, it confirms its downtrend again. So, as long as GBP/USD is below the trendline support zone, we will see more selling pressure on GBP/USD. 1.34/40/1.3490 is identified as a selling zone for the current circumstance. Stop-loss should be above its trendline resistance and swing high zone of 1.3645 price zone. Our target zone to the downside is the 1.3200/1.3180 price zone.
Short
by Gold_Trading_Expert
1
GBPUSDThe British pound initially fell during the trading session on Thursday but then found buyers to push it towards the 1.36 level. At this point, the market is trying to break out above the recent consolidation, and I think it has a reasonable chance. If we can break above the 1.3650 level, at that point in time I might be convinced that we are getting ready to make a bigger move. That being said, if we do get that bigger move, it is very likely that the British pound will be one of the better performers because not only has it been resilient, the Bank of England itself is sounding more hawkish than most of its competitors. It is because of this that if you are looking to buy the US dollar, this is not the pair to do it in. You have interest rate noise coming into the picture, and then of course will continue to be a major problem. With both central banks being so hawkish, it does make a certain amount of sense that the British pound will be able to “hold its own.” In other words, if the US dollar does start to fall against most currencies, it most certainly will see a lot of momentum in this particular pair. To the downside, if we were to break down below the 1.35 handle, it opens up the possibility of a move down to the 1.34 handle. This would be a very negative turn of events and could open up the 1.33 level after that. If we do get some of this breakdown that I am talking about, then I would anticipate that the British pound will have had its day and we will go back to running towards the US dollar, more likely based upon fear than anything else. At this point, it is simply a matter of time before we break out of this little area, and we can start to place real trades. As things stand right now, it is more or less going to be a situation where we have to wait on the market to make up its mind completely, and therefore we can follow later. After all, this is a market that continues to see a lot of noisy behavior, but with both central banks being so hawkish, it does make sense that if the dollar is going to fall anywhere, it is going to be here.
by SmoothJB