GBP/USD Remains An Attractive Buy!|KOL Analysis•Olimpiu Tuns

GBP/USD edges higher and it‘s almost to hit 1.3285 yesterday’s high as the greenback is punished by USDXs sell-off. The pair has confirmed again that the bullish bias remains intact on the Daily chart.

Another higher high, a bullish closure above 1.3285 brings in new long opportunities. USD takes a hit from the US Dollar Index which failed once again to take out a dynamic resistance. USDX is traded at 92.61, right above 92.55 critical support. A valid breakdown validates a deeper drop and EUR/USD bullish run.

BOE Gov Baileys speech delivered at the Jackson Hole Symposium could generate high volatility on this pair. Moreover, the USD Chicago PMI, Revised UoM Consumer Sentiment, Personal Spending, Personal Income, Goods Trade Balance, and the Prelim Wholesale Inventories data will definitely shake the rate during the day.

● GBP/USD Breakout Attempt!

Today, GBP/USD increased as much as 1.3273 pointing to 1.3285 yesterdays high. 1.3262 static resistance holds, for now, a valid breakout suggests buying as the pair it should approach the 1.3517 upside obstacle in the upcoming days.

The frustration produced by the bears incapacity to push the rate down to the median line (ML) validated further growth. The next upside targets are seen around 100% (1.3517) level or higher at the upside 50% Fibonacci line.

GBP/USD is strongly bullish and it should resume its upside move if the BOE‘s message will come in line with expectations or if Bailey’s speech will be a hawkish one. The short term sentiment could be changed by another false breakout with great separation above 1.12364 resistance.

● USDJPY Drops Like A Rock!

USD/JPY fell to around 106.20 after failing to make another higher high. The continuous bearish pressure clouded the bullish reversal scenario. Still, a breakout of 107.06 level will attract more buyers which will drive the rate higher towards fresh new tops.

It is trapped between 107.06 and 105.10 level, well have a great trading opportunity after a valid breakout occurs. The upper median line (UML) acts as a magnet and it could still attract the rate in the short term, but only a valid breakout above it will really suggest buying.

The current drop seems strong enough for the price to reach the 106.00 psychological level and the 50% Fibonacci line in a few hours. Passing below the near-term support levels makes USD/JPY attractive for sellers.

It is recommended to wait for either a breakout above the 107.06 level or for a downside breakout of 105.10 before opening a trading position.

● US Dollar In Danger!

USDX plunges after another bounce of 50% Fibonacci line. Now, it‘s targeting the 92.55 static support, a valid breakdown suggests a continuous drop and USD’s depreciation versus its rivals.

On the other hand, a reversal pattern on the 92.55 level could announce a bullish reversal and a change in sentiment for the dollar. The selling pressure is high as long as it stays under the 50% Fibonacci line and after the failure to reach at least the 93.81 level.

{About the Author}

Olimpiu Tuns is a seasoned market analyst / trader / trainer on the financial markets with expertise in forex, cryptocurrencies, commodities, futures, options, index, CFD for more than 8 years. He is also a famous blogger in both technical and fundamental analysis, trading signals, trade setups, etc.

He has worked as a Market Analyst / Consultant for three major Brokerage companies, Admiral Markets, MultiBank Exchange Group and InstaForex (live webinars, market analysis, educational materials, video analysis, video tutorials, ghostwriting, content creator), as a Social Media Manager and as a Financial Markets & Crypto Analyst / Contributor for very important news portals/blogs (investing.com, benzinga.com, forexalchemy.com actionforex.com, countingpips.com), websites, educational platforms (Forex.Academy, Forex.Today), independent clients, etc.

Olimpiu Tuns currently works as a Financial Markets & Crypto Analyst / Signal Provider / Trader / Trainer.

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