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 global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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

AUD/JPY Analysis: Rate Falls to Important Support EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: AUD/JPY, RATE HIKES, S&P 500, WTI Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. AUD/JPY: Rate Falls

Trader’s Tools

Fixed Exchange Rates: Benefits and Limitations

Fixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present.

Trader’s Tools

Alternative Investment Options

Traders and investors are increasingly turning to alternative investment options to diversify their portfolios and seek new avenues for potential returns. In this FXOpen article, we discuss alternative investments, examining the types and explaining the reasons why they are gaining

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. 60% 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.