THE GBP/USD CLINGS TO GAINS AHEAD OF US DATA| KOL Forex Analysis•Bola Akinya

The GBP/USD pair maintained its strong bid tone through the early North American session and refreshed daily tops, around the 1.3145 region in the last hour.

The pair showed some resilience near mid-1.3000s and caught some fresh bids on Tuesday, snapping two consecutive days of the losing streak to over one-week lows. The strong intraday positive move was sponsored by the emergence of some fresh selling around the US dollar.

The prevalent risk-on mood, amid positive NEWS on a potential treatment for COVID-19 and US-China trade talks, undermined the greenback's relative safe-haven status against its British counterpart. This, in turn was seen as a key factor driving the GBP/USD pair higher.

The global risk sentiment remained well supported by reports that the Trump administration is considering fast-tracking the authorization of an experimental vaccine being developed by AstraZeneca and Oxford University for use in the US ahead of the elections.

On the other hand, the GBP seemed rather unaffected by the lack of progress in Brexit talks. Bullish traders even shrugged off the data, which showed that the UK retail sector is struggling. In fact, the Confederation of British Industrys distributive trade survey fell into negative territory in August, to -6% from the +4% reading in July.

From a technical perspective, the GBP/USD pair now seems to have found acceptance above 100-hour SMA and now seems poised to gain further.

Some follow-through buying beyond mid-1.3100s will reaffirm the bullish bias and push the pair further towards reclaiming the 1.3200 mark.

However, bulls might refrain from placing aggressive bets ahead of the Fed Chair Jerome Powell's speech at the Jackson Hole Symposium, later this week. Hence, any subsequent positive move runs the risk of fizzling out rather quickly.

Market participants now look forward to the US economic docket, highlighting the release of the Conference Board's Consumer Confidence Index. The data, along with the broader market risk sentiment will influence the USD price dynamics and produce some short-term trading opportunities.

Weekly Analysis GBP/USD

The British pound has rallied a bit during the trading session on Tuesday again, pressing the highs from the Monday session

The GBP has rallied quite a bit during the trading session on Tuesday, as we continue to see a lot of upward pressure. Give or take a few days, we can anticipate that it will go looking towards the highs again and break out. Longer-term, I anticipate that we will probably go looking towards the 1.35 handle, but it may take some time to get there.

This is probably more indicative of the US dollar than it is the British pound, as the Federal Reserve continues to loosen monetary policy, and with Jerome Powell giving a speech at Jackson Hole this week, it is very likely he will start to talk about how the Federal Reserve looks at inflation.

This of course will be important in how traders see the Federal Reserve and its dealings going forward.

Authors Biography

Bola Akinya is a Forex trader and consultant with more than 20 years of immense experience in Forex Indices, Commodities and Currencies.

Prior to becoming a professional Trader, she held positions as a Head of Sales/Business Developer with Credit Registry and Operations Manager with Peak Merchant Bank both in Nigeria before moving to UK where she worked with great companies like AIG and The Wealth Training Company as Course Instructor and Speaker for over 15 years on the FX and Stock Markets before she started her own company – The Learn and Earn Forex Training Company over 5 years ago.

Over the years, she learned 121 from Top traders all over the UK which enabled her to develop her own unique strategies and trading systems that has made her a successful trader and Trainer.

She is married with 2 boys and 2 cats.

With the combined use of Fundamental and Technical analysis, she trades on the short term – medium term, as well as Economic News releases, combining both to give the consistency that is required for successful trades.

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