GBPUSD powers higher, rising above 1.4950. Price took a rally to peak at the 38.20% Fibonacci Retracement only to be sell short in late trading session. Trading quietly at 1.4920. prices are indicating a short term bullish trend. Steadied between the 23.60% & 38.20% Fibonacci Retracement, price action might be supporting the notion that yet another daily top may have formed. As the 1.5000 round figure continues to be capped, technical facts make us believe that more bearishness is coming for GBP.
Falling to 1.4850 in early London session, the British pound extended a reversal to peaked at 1.4970 on failure to break the GBP lower. The big reversal created a crossover (from oversold region) on the Stochastic Oscillator indicator. While GBP/USD edged overnight, the medium-term bias will remain to the downside as long as rates stay below key psychological resistance at 1.50. That said, the first support is at 1.4850. Going below it should extend prices towards 1.4800.
Despite powering higher, GBP could not make another run above the key 1.5000 level. Price fades back below 1.4920 after session high as risk premia heavily of the upcoming election. Range trading continues to take shape on the H1 chart, with candlestick completing near-term consolidation within the 78.60% & 100.00% Fibonacci Retracement mark. As the BOE Monetary Policy Committee voting taking place today, we favors a wait-and-see approach.