GBPUSD Forex Signal
GBPUSD has reached an interesting juncture on the weekly chart and it is good time to review for any potential trade. Lets start with technical analysis first.
GBPUSD Technical Analysis
GBPUSD has been in a long term uptrend, correction started two weeks ago when price failed to break above 1.6750. Since then GBPUSD has dropped 600 pips and came down to rest on Weekly Trendline.
If GBPUSD manages to move below and close below 1.6100 on daily/weekly chart then further down ward movement is likely to continue. A bounce from this Trendline to the upside can send the pair back to 1.6750.
GBPUSD Fundamental Analysis
Members of the Monetary Policy Committee (MPC) yesterday decided against increasing the interest rates. For few months now market has been speculating on MPC to increase rates, but rise in inflation and slow economic growth are hindering the way to any increase in interest rates. A rate rise will further decline growth and could accelerate inflation beyond 4.5%
Keep an eye on the retail sales numbers later today and speeches from couple of MPC members.
GBPUSD Forex Signal
We will remain bullish and look for Longs until 1.6750. If GBPUSD manages to close below 1.6100 then we will turn bearish and look for Shorts.
I say GBP/USD is headed south today.
I think thath Gbp/USD will go up because the dollar is in a really bad shape lately.