GBP/USD – Can it break 1.37?

A serious barrier of resistance

The following week may very well be actually attention-grabbing for cable, with the Fed and BoE being among the many two most aggressive central banks and inflation in each international locations persevering with to rise quickly.

The pair bumped into resistance final month round 1.37, the place the 200/233-day SMA band crossed the 50 fib degree to offer a substantial barrier of resistance.

It’s been on the rise once more over the past couple of weeks however the previous 5 days has seen extra volatility than route. Each international locations are seeing excessive inflation and 5 or 6 fee hikes are already priced in for the central banks. The query is how a lot additional it could actually go?

The current pattern has been bullish and if that continues, 1.37 will as soon as once more be key for a similar causes. A transfer above right here can be extraordinarily bullish , with the subsequent check coming round 1.3834 – prior excessive and 61.8 fib degree.

Equally, a rotation decrease may additionally ship a robust sign, particularly coming forward of the earlier excessive.

This text is for common info functions solely. It’s not funding recommendation or an answer to purchase or promote securities. Opinions are the authors; not essentially that of OANDA Company or any of its associates, subsidiaries, officers or administrators. Leveraged buying and selling is excessive danger and never appropriate for all. You possibly can lose your whole deposited funds.

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