GBPUSD rises above 1.2700 as risk sentiment improves.
GBPUSD must remain above 1.2700 and target the 50-day moving average at 1.2785. And the 1.2800 level to maintain apostive momentum.
The pound sterling recovered from daily/weekly lows and surged above 1.2700 on Wednesday. As risk appetite strengthened following a Bank of Japan (BoJ) official’s statement. That the BoJ would not raise interest rates in the face of market volatility. As a result, the GBPUSD is trading at 1.2720, having fallen as low as 1.2680.
Technical Outlook
Pound must remain above 1.2700 and target the 50-day moving average at 1.2785. And the 1.2800 level to maintain apostive momentum. The GBPUSD is neutral to bearish after falling below the 50-day moving average (DMA) of 1.2785. Sellers pierced the latter raised buyers’ alarms. Which fell below 1.2700 but remained on the back foot as the Greenback strengthened.
Moreover If Pound falls below 1.2700, the August 6th low of 1.2672 may be tested. And losses might be even greater if it falls below the 200-day moving average at 1.2651.
If buyers retain the GBPUSD above 1.2700 and push the market price closer to the 50-day moving average, a test of the 1.2800 level may be exacerbated.
https://voiceoftraders.com/analysis/us-dollar-surging-across-markets-boosted-by-gains-versus-the-yen
