GBPUSD has entered a consolidation period above 1.2000.
GBPUSD has had a rather hesitant start to the new week after Friday’s dramatic comeback. The technical picture of GBPUSD indicates that the consolidation is expected to continue. The pair was last observed moving in a constricted channel above 1.2000.
The choppy trading may continue ahead of Fed Chairman Powell’s testimony.
The positive market sentiment the US Dollar from maintaining its gain. Despite the fact that this data helped the currency find some demand throughout the US session.
The US Federal Reserve continuing hikes in the policy rate will be required in its semi-annual report. On Tuesday and Wednesday, respectively, Chairman Jerome Powell will submit this report. And answer inquiries before the Senate Banking Committee and the House Financial Services Committee.
Market players are probably going to stay away before to Powell’s hearing, letting risk perception control the pair’s movement. Hence, GBPUSD may struggle to find direction unless there is a discernible shift in market sentiment.
Investors will closely monitor events relating to Brexit in the meantime. ING researchers, however, predict that the global risk climate and interest rate. Differentials between the GBP will be altered in a recently released report. More by the UK and other large economies than by the new EU-UK agreement.
GBPUSD Technical Analysis
The Fibonacci 23.6% retracement of the most recent downturn and the four-hour chart’s 100-period (SMA) are in line. Where the GBPUSD currency pair is trading, which is close to 1.2050. The declining trend line that is located above the lower-highs that appear to have developed on the four-hour chart creates significant resistance above that level at 1.2080.
The only big positive development that would allow for a protracted comeback to the Fibonacci 38.2% retracement level at 1.2120.
Prior to 1.1970 (static level) and 1.1930. (Psychological level, static level, 100-day SMA). 1.2000 (downside) serves as important support. (end-point of the latest downtrend, static level).
