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GBP/USD entered the weekend near the 1.25855 level, coming into view of the lows it made earlier in the week near the 1.25600 ratio last Tuesday. GBP/USD hit a high near 1.27485 on Wednesday and held that level on Thursday before starting to fall again on Friday. The US jobs report was released on Friday, which in fact was seen as “advantageous” to dampen the US dollar’s volatility, but that didn’t happen.
Behavioral sentiment still appears to be at a high level in financial markets, which led to GBP/USD selling. However, the volatility seen last week was to be expected, and the next few days of trading will be even more tense.
GBP/USD has reached an interesting support level that could prove attractive to speculators who like excitement. Not only did GBP/USD close near the weekly low, but it’s not much higher than the monthly low it hit on Friday the 25th.th August when the currency pair challenged the 1.25500 level.
Traders who want to bet on GBP/USD being oversold should not be too aggressive just yet. Since the second week of July, the remaining nervous sentiment in the forex and financial markets in general is still overshadowed. GBP/USD is still above the values seen in May and early June this year, but support needs to be closely monitored around the 1.25450 level.
Traders over the next few days should remember that tomorrow is a bank holiday in the US and the forex market will be relatively quiet. With Big US Firms Entering Long Holidays, Doors May Open for More Sensitive GBP/USD Trading Tomorrow, Support Levels Proving Sustainable to Build Bullish Sentiment There is a need.
However, tomorrow’s trade could look very different from the one that unfolds on Tuesday. Speculators should be prepared for more volatility in the middle of this week, especially as financial institutions brace for a change in outlook based on the lackluster US economic data of the past few weeks. .
- Traders are back from the big US holidays and will rely on their perceptions of what’s to come this week with no major economic data coming from the UK or the US this week.
- GBP/USD is also looking at last week’s lows, so support levels may become important tomorrow. A hold between 1.25800 and 1.25750 could be interpreted as a buy signal.
The GBP/USD speculative price range is 1.24860-1.27340.
Last week’s GBP/USD trading certainly produced predictable nervous results. The GBP/USD range has again weakened as it tested mid-week highs. Tomorrow’s GBP/USD could turn out to be quite questionable again, as tomorrow is a bank holiday in the US. Tomorrow’s volume will certainly be lower than usual, but Tuesday’s trade could create price velocity as financial institutions are fully engaged in pursuing positions.
Speculators may look at GBP/USD and perceive it to be significantly oversold, but the forex situation remains nervous and the USD has strengthened against many major currencies in a fairly aggressive way. It creates sence. Traders expecting an upside price move should be patient and not be overly ambitious in their upside bets.
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