GBP/USD Rising Odds For A Move Lower After BoE?|KOL Analysis•Olimpiu Tuns

Actually, the short-term rebound could be only a temporary one before it drops again. Technically, GBP/USD is located deep in the seller’s territory, so it could drop anytime approaching fresh new lows.

The pair ignored the USDXs rebound, it remains to see how it will react after the Bank of England will publish its Official Bank Rate and the Asset Purchase Facility later today. The MPC members could vote unanimously to keep current the monetary policy.

If you want to trade GBP/USD, maybe you should wait for the US data as well as the Unemployment Claims, Building Permits, Housing Starts, and the Philly Fed Manufacturing Index could boost or weaken the greenback.

● Is GBP/USD Ready To Drop Again？

GBP/USD has bounced back from above the 61.8% (1.2712) level and now is fighting hard to reach and retest the median line (ML) of the major ascending pitchfork and the 78.6% retracement level.

The pair is still vulnerable to slide further as long it stays below the median line (ML). The valid breakdown below this line suggested a deeper drop. The current rebound could help us to go short again.

A failure to reach the median line (ML) or a false breakout above it could attract more sellers in the short term. Another bearish movement could aim for the 61.8% (1.2712) retracement level which represents the next downside target.

The major downside target, support, is seen at the downside 50% Fibonacci line (ascending dotted line) of the ascending pitchfork, drawn at half the distance between ML and LML.

GBP/USD could continue higher, to extend its rebound, only if it jumps, closes, and stabilizes above the median line (ML), and above the 78.6% (1.3066) level. Any bearish pattern around the near-term resistance levels should send the rate down.

● EUR/USD Downside Breakout？

EUR/USD is trading in the red at 1.1772 after failing to reach at least the second warning line (WL2). It challenges the up channels support, a downside breakout followed by a drop below the 250% Fibonacci line, and below 1.17 psychological level suggests down reversal and a great short opportunity.

This scenario could activate a bearish momentum towards the first warning line (WL1) and down to the 1.1495 static support. I believe that only a strong bullish engulfing here, another false breakdown below 1.18 could invalidate a further drop.

● USDX Goes For Another Higher High!

USDX returns higher after failing to approach and reach the 92.55 static support. It has also failed to retest the Falling Wedges broken resistance, minor downtrend line, signaling strong buyers.

Another higher high, jump above 93.66, and a valid breakout above the 93.81 level could validate a significant leg higher. An up reversal could be confirmed by a valid breakout above the upper median line (UML) of the major descending pitchfork.

A strong upside movement should boost the USD which could dominate the currency market again.

{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 / Trader / Trainer / Portfolio Manager.

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