The 27 February GBPUSD Fundamental Outlook shows that the Pound is trading with little direction presently and is at near net unchanged levels on the day so far versus the dollar and other majors.
27 February, HotForex – Cable has settled in the mid-to-upper 1.39s after tumbling yesterday over a big figure from the day’s high to a 1.3928 low. The pound didn’t see a lasting bid following remarks by BoE Deputy Governor Ramsden, yesterday, a dove who now sees the case for hiking sooner than later.
Markets are already discounting a further rate hike after the BoE last November lifted the repo rate for the first time in over a decade. The latest Reuters poll found a consensus expectation for the BoE to hike the repo rate another 25 bp May.
27 February GBPUSD Fundamental Outlook
Cable has been playing a sideways for nearly a month, and hence in such a long-term time-frame is likely to present more of the same for now, as 200-weeks EMA flattened out during the last 6 weeks. Meanwhile, in a Daily time-frame, during 2018, Cable forms a Falling Wedge pattern, which is considered to be a bullish candlestick pattern.
Hence despite consolidation noticed, a falling wedge breakout to the north along with the fact that pair is holding well above the 50-DAY SMA for 4 months now, strengthen the bullish view on the pound in long-term. Looking the indicators, RSI is flattering at neutral zone, while MACD lines have weakened but they are still moving in the positive territory. Support comes at 1.3800-1.3895.
In short-term, GBPUSD has presented today a limited negative momentum on London open, with the price action sloping down to 1.3944, from day’s high at 1.3995. However, with the pair unable to break below the recent down fractals and the lower Bollinger pattern in the hourly chart, is likely to see GBPUSD, retesting yesterday’s highs.
A break above the 1.4000 level could confirm a possible retest of the 1.4060 level. Intra-day support is at 1.3920. A break below this could trigger a short position with a possible target at 1.3850.
The next items on the UK agenda include consumer confidence and lending data from the BoE, on Thursday, and the February PMI surveys for the manufacturing and construction sectors, due on Thursday and Friday, respectively. However Powell’s speech today, expected to add volatility in the market.
This article about 27 February GBPUSD Fundamental Outlook was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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