The pair rose sharply yesterday from an intraday low of 1.3025 to a high of 1.3122. Today, GBPUSD is bullish above 1.2900 level. Could the pair continue moving higher? What does the technical analysis show?
14 September, OctaFX – The British pound suffered another volatile week on the foreign exchange market, as Brexit continued to drive market sentiment. The British pound hit a five-week trading high in early week trading against the greenback, as EU chief Brexit negotiator Michel Barnier said that a deal could be reached ‘within six to eight weeks’.
The British pound also received a boost from better than expected monthly UK GDP data, as summer spending from the World Cup and better weather conditions boosted the UK economy.
The Bank of England meeting proved a non-event for investors, with sterling rising towards the 1.3100 as the Bank of England noted that future rate hikes would be ‘slow and gradual’.
GBPUSD Bullish Above 1.2900
The GBPUSD pair rose sharply yesterday after the BoE committed itself to a gradual tightening process. It rose from an intraday low of 1.3025 to a high of 1.3122. Today, it was little moved in the Asian session.
It is now trading at 1.3110, which is between the middle and upper line of the Bollinger Band. It is also along the 61.8% Fibonacci Retracement level. The RSI is flat at about 65. Today, the pair could continue moving higher and if it does, it will test the 1.3200 resistance level. If it moves lower, it will test the 50% Fibonacci level of 1.3010.
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