Daily Market Analysis from ForexMart

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GBP/USD Technical Analysis: October 28, 2016

The sterling pound was able to acquire some measure of support following the release of a highly positive GDP report for the region. The GBP has now significantly increased in value. However, further profits for the sterling pound was restrained after the USD was able to recover its previous losses.

The GBP/USD remained a few points away from its current support level of 1.2200 during Thursday’s session, with its most recent reversion stalling within the 1.2150 range which caused the pair’s price rate to drop. Meanwhile, the GBP stayed within the 1.2200 range and increased in value during the London session, but the GBP/USD pair slightly weakened during the New York session. The GBP reverted from the 50-EMA within the 1.2200 range and was able to break through the 200-EMA in its hourly chart. The 200 EMA is is exhibiting a downward trend, while the 50 and 100 EMA is currently at the neutral territory. Resistance levels for the GBP/USD is at 1.2300, while support levels for the pair are expected to be at 1.2200.

The MACD technical indicator for the pair is currently at the middle, and an increase in buyer strength is expected once the histogram indicator moves to the positive side of the chart. However, once the MACD enters the negative side, then this will signal a market takeover by sellers. If the sterling continues to weaken, then the GBP/USD pair is expected to go below 1.2200, wherein sellers are expected to move the currency’s value further into 1.2100. On the other hand, the downward pressure on the sterling might be lessened if the pair goes beyond the 1.2300 range.