GBP/USD Bounce Rejected at Key Fibonacci Level as USD Sellers Struggle For Momentum

Speaking Factors:

  • GBP/USD faces robust resistance slightly below 1.36
  • With a light-weight financial calendar this week, focus will likely be on NF knowledge out on Friday

GBP/USD is struggling to interrupt above a key Fibonacci stage regardless of continued help from patrons. The pair has managed to stage a great comeback since final Thursday because the US Greenback has come off barely from its spectacular rally final week however there isn’t a transparent path larger as resistance looms shut by.

The realm between the 23.6% Fibonacci retracement (1.3577) from the February 2021 highs and the 1.36 mark is the important thing problem up forward and with an absence of knowledge on the calendar for right now’s session and a reasonably quiet begin to the week in markets we may count on GBP/USD to stay round present ranges all through the day, with potential sideways consolidation within the coming classes. Final week’s bounce does appear to have gotten a bit forward of itself and with the pair buying and selling beneath its key shifting averages, the short-term shopping for momentum appears to be pressured.

GBP/USD Every day Chart

GBP/USD Bounce Rejected at Key Fibonacci Level as USD Sellers Struggle For Momentum

The calendar is fairly weak for the UK this week with just some PMI knowledge popping out over the subsequent few days. The main focus will likely be on the roles knowledge for the US on Friday, which has had numerous emphases placed on it because the Fed has signaled {that a} robust studying would possible result in the beginning of financial tightening in its November FOMC assembly. The info may even draw numerous consideration as fears of stagflation have began to mount, with a powerful jobs studying possible pushing again these fears about progress stagnating anytime quickly.

On the Greenback facet, the DXY has been rejected throughout the resistance space (94.27 – 94.79) I talked about final week. These are the September and October 2020 highs, and each of them had been adopted by robust pullbacks so a rise in bearish stress was anticipated. The query now’s whether or not Greenback bulls are going to have the ability to maintain the DXY above 94 over the approaching days because the final two day by day candlesticks present tried bearish reversals however robust help thus far round 93.90 with Sunday’s opening candlestick exhibiting a hammer sample, which could be the indicating a short-term backside.

DXY Every day Chart

GBP/USD Bounce Rejected at Key Fibonacci Level as USD Sellers Struggle For Momentum

Study extra in regards to the inventory market fundamentals right here or obtain our free buying and selling guides.

— Written by Daniela Sabin Hathorn, Market Analyst

Comply with Daniela on Twitter @HathornSabin


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