From a technical perspective, there is evidence a recent uptrend in GBP/USD may have rotated lower after pulling back down below the 50-day moving average, which is in itself a bearish sign.
The technical outlook for the Pound against the U.S. Dollar has improved somewhat following last week's strong advance but we will be watching Brexit and U.S. mid-term elections to potentially disrupt our bullish stance.
The GBP/USD rate is currently trading within a sideways range between a 1.2930 floor and a 1.3290 ceiling high, and it is likely to continue oscillating within that range in the week ahead.
GBP/USD is seen correcting back within its uptrend but the exchange rate is likely to resume higher after pull-back hits support zone in 1.29/30s. The Pound will take its cue from Brexit news and the US Dollar from retail sales data.
GBP/USD closed above a key trendline and chart studies suggest the pair could go higher but Sterling faces volatile week dominated by a crunch E.U. summit while the USD will need inflation data to come out on the strong side this week if it is to retain its broader dominance.
GBP/USD has corrected back into levels consistent with a medium-term uptrend and could rely on solid support over coming days. Fundamentally speaking, the main event for Pound the Conservative party conference and for the Dollar all eyes will be on the non-farm payrolls release.
GBP/USD remains in a short-term uptrend and a break of the previous week's highs will provide green-light for bulls. Brexit and inflation data dominate Sterling's calendar this week, while for the Dollar Trump's trade crusade will be the key driver.
GBP/USD uptrend remains intact on balance despite recent weakness but a break above 50-day MA required to signal continuation higher. The main calendar event for Sterling is Bank of England meeting and for the Dollar it's inflation data
GBP/USD has pulled having encountered a tough resistance point and the extension of young up-trend now in doubt. The main release for Pound is sector PMIs whilst for Dollar Payrolls are the main data print
GBP/USD could be reversing trend after 5-day run higher from 1.26 lows with momentum appearing bullish as the RSI momentum indicator is back at August 01 levels, but a looming trendline is a major obstacle to the extension of the revovery.
From a technical perspective the pair is oversold, but in the absence of any strong reversal signs the downtrend remains intact, and therefore likely to continue, albeit probably after a pull-back.
GBP/USD falls back below 1.30 temporarily as bear trend resumes with heightened risks of a Brexit 'no-deal' weighing on Sterling. The main release for the Pound is Q2 GDP data - for the Dollar Inflation data looms large
GBP/USD rebounded strongly on Friday but one strong day doesn't change the trend and a break below last week's lows would signal continued downside. Donald Trump's new 'weak Dollar' policy tipped to dominate in coming week
- Despite some bullish signs trend down remains intact- Break below 1.2975 required for confirmation lower - Main event for UK is still Brexit machinations; for US Dollar Chairman Powell's testimony
Technical studies suggest the prospect of short-term gains in GBP/USD. Watch service sector PMI out of the UK mid-week for guidance on Sterling while manufacturing and employment data dominate the USD's calendar this week.
Technicals point to potential for an end to GBP/USD losses while on the fundamental front much will depend on the outcome of the European summit at the end of the week and whether Donald Trump will turn his guns on Europea over the issue of trade.
Technicals confirm the Dollar should remain in control of the Pound, but Elliot wave count hints at potential for GBP/USD rebound. Central bank communication forms the fundamental focus for both currencies.
The GBP/USD has just reached a major glass ceiling increasing risks of a downside rotation. On the fundamental front, we watch the US Federal Reserve decision and a slew of important UK data for guidance in the week ahead.
Downtrend in Pound Sterling tipped to continue against the Dollar, despite signs of overextension, next stop 1.3090. Watch services PMI data this week.
The week ahead for GBP/USD, including forecasts, analysts views, technical analysis and outlook for the economic calendar.
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