CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

GBP/USD technical analysis: Bulls eyeing 100-hour SMA/38.2% Fibo. near 1.2600 handle ahead of FOMC

2019-06-19 20:15

  • The GBP/USD pair traded with a mild positive bias for the second consecutive session on Wednesday and built on the overnight rebound from the key 1.2500 psychological mark.

  • The pair did face some resistance near the 23.6% Fibo. retracement level of the 1.2759-1.2506 downfall but managed to clear the hurdle after mostly in line UK consumer inflation.

The pair is now moved closer to 100-hour SMA, which is closely followed by 38.2% Fibo. level near the 1.2600 round figure mark. The latter marks a previous strong horizontal support breakpoint and should now act as a key pivotal point for short-term traders.

With technical indicators on the 1-hourly chart gaining positive traction, sustained move beyond the mentioned handle might prompt some near-term short-covering move and lift the pair further towards 50% Fibo. level, near the 1.2630 region.

However, persistent Brexit uncertainties should keep a lid on any strong follow-through recovery move ahead of the next big event risk – the latest FOMC monetary policy update, scheduled to be announced later during the US trading session.

On the flip side, the 23.6% Fibo. resistance breakpoint, near the 1.2565 region now seems to protect the immediate downside, which if broken might negate prospects for any near-term recovery and turn the pair to resume its well-established near-term bearish trajectory.

GBP/USD 1-hourly chart


This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.

Economic news

    Exchange Rates

    GBPUSD +0.43% 1.37984
    EURUSD +0.62% 1.1674
    XAUUSD +0.16% 1799.52
    XTIUSD +0.41% 82.062
    NAS100 +0.63% 15707.6
    US30 +0.36% 35671.4