GBPUSD Technical Analysis

The GBP/USD pair is middling quietly ahead of the London markets, trading around the 1.3960 level after hitting the brakes on Monday’s decline from 1.4070. More details are discussed in the 27 February GBPUSD Technical Analysis. Read on! 

27 February, GKFX – The Sterling will see a busy day on Friday when Prime Minister Theresa May gives a speech where she will set out her Brexit plan and outline the negotiating position for the UK following Brexit, which begins next March.

PM May has come under fire from within her own ruling Conservative party lately, facing accusations of sacrificing UK sovereignty in order to appease European Union (EU) leaders in Brussels.

Fed Chair Powell Testimony Today

Before Friday though, Sterling can expect some volatility as markets shift under the weight of Fed chairman Jerome Powell’s congressional testimony today before the House Finance Committee. The congressional hearing marks chairman Powell’s first major appearance after taking the reins from Janet Yellen, and his words will be watched closely by market participants. Chairman Powell is slated to begin his testimony at 15:00 GMT.

UK Economic Outlook Continues to Brighten

The economic outlook for the UK continues to brighten, and with surprisingly hawkish comments from Bank of England (BOE) members last weekend, the BOE looks set to begin raising interest rates in short order.

Even with continued Brexit concerns hanging over the Pound Sterling, the optimistic outlook and aggressive stance of the BOE are providing a structural base for the GBP, as a recent recovery in Greenback bidding has done little to drive the GBP/USD pair off of its hinges.

27 February GBPUSD Technical Analysis

Bullish potential remains strong in the pair, and the Sterling looks set to recapture the 1.4000 key handle if buyers can successfully fight off the bears to reclaim the psychological level.

The Cable is still trading well above the 200-day SMA and has found support recently from the 34 EMA, though the triangle forming on H4 charts could spell out a new interim bearish trend if the pair manages to break convincingly below 1.3920. Intraday levels for Tuesday’s trading session see 1.3924 and 1.3900 acting as support, while resistance currently sits at 1.4000 and 1.4025.


This article 27 February GBPUSD Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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