GBPUSD Extends Winning Streak After Trump Inauguration

FXOpen

The Great Britain Pound (GBP) extended upside movement against the US Dollar (USD) on Monday, increasing the price of GBPUSD to more than 1.2450 amid some key economic events. The technical bias remains bullish because of a higher low in the recent downside wave.

Technical Analysis

As of this writing, the pair is being traded around 1.2454. A hurdle can be noted near 1.2492, the confluence of trendline resistance as well as 38.2% fib level as demonstrated in the given below daily chart. A break and daily closing above the 1.2500 resistance shall incite renewed buying interest, validating a move towards the 1.2774 resistance zone.

GBPUSD Extends Winning Streak After Trump Inauguration

On the downside, the pair is likely to find a support around 1.2300, the confluence of psychological number as well as trend line support ahead of 1.2015, the intraday low of Friday and then 1.1916, the swing low of 2016.

Fundamental Analysis

The dollar extended losses on Monday after U.S. President Donald Trump’s protectionist remarks. In his inauguration address on Friday, Trump pledged to put “America first”. He signaled he would abandon the Trans-Pacific Partnership and renegotiate NAFTA. Sterling traded above $1.24. British Prime Minister Theresa May is to meet Trump in Washington on Friday. ECB President Mario Draghi is due to speak later Monday.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News GBP/USD Price Falls to 1.26 after Bank of England Decision

Latest articles

Forex Analysis

EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March

As the EUR/USD chart shows at the start of the European session today, the exchange rate has dropped below EUR 1.08 per US dollar.

Tuesday's news contributed to this. According to Nasdaq.com, on March 26, 2024, The

What Is a Megaphone Pattern and How Can You Trade It?
Trader’s Tools

What Is a Megaphone Pattern and How Can You Trade It?

Chart patterns have been used to analyse financial markets for a long time. One popular formation in forex and other markets is the Megaphone. In this text by FXOpen, we'll explain what the setup is and how to trade using

Indices

NIKKEI-225 Analysis Indicates Possibility of Correction from Historically High Levels

On March 21, the value of the Japanese stock index reached a historical maximum, exceeding the level of 41,100 points. This was facilitated by:

→ Weak yen supporting exporters. It increases the value of profits earned abroad for a large

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.