GBPUSD Falls More Than 350 Pips In Just Two Days

FXOpen

China devalued Yuan while Crude fell below $40 a barrel and this what happened with the price of Cable – more than 350 pips fall in just two days.  The GBPUSD hit the low of 1.5451 yesterday following the release of US durable goods report. The technical bias however remains bullish because of a Higher High and Higher Low in the recent wave.

Technical Analysis

As of this writing, the pair is being traded around 1.5490. A support can be noted around 1.5423, the swing low of the recent downside wave ahead of 1.5353, the 76.4% fib level as well as major horizontal support as demonstrated in the following daily chart.

GBPUSD Falls More Than 350 Pips In Just Two Days

On the upside, the pair is expected to face a hurdle near 1.5552, the 50% fib level ahead of 1.5641, the 38.2% fib level and then 1.5818, the swing high of the last major upside rally. The technical bias will remain bullish as long as the 1.5423 support area is intact.

US Durable Goods Orders

Orders to U.S. factories for long-lasting manufactured goods rose in July, and demand in a key category that tracks business investment plans jumped by the largest amount in 13 months. The Commerce Department says orders for durable goods increased 2 percent in July after a 4.1 percent gain in June. Orders in a category that serves as a proxy for business investment increased 2.2 percent in July following a 1.4 percent rise in June. These orders had fallen in four of the previous five months, reflecting the soft patch that manufacturing has faced this year.

Trade Idea

Considering the overall technical and fundamental outlook, buying the cable around 1.5450 support area appears to be a good strategy if we get a major bullish reversal on daily chart.

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 Exchange Rate Has Fallen Below 1.08 Level In the Spotlight: US Inflation and GDP Data GBP/JPY at Highest Level in Over 15 Years The Dollar Resumes Growth After a Corrective Pullback Market Analysis: EUR/USD Slips as USD/CHF Targets Upside Break

Latest articles

Indices

Nasdaq Index Shows Uncertainty Ahead of PCE Release

The main event of the week is the release of the Personal Consumption Expenditures (PCE) index, which the Federal Reserve particularly focuses on when assessing inflation in the US. The release is scheduled for Friday at 15:30 GMT+3.

Forex Analysis

EUR/USD Exchange Rate Has Fallen Below 1.08 Level

As the EUR/USD chart today shows, yesterday the rate dropped by 0.46% – the most significant strengthening of the US dollar against the euro in one day this month. Moreover, the rate fell below the psychological mark of 1.

Forex Analysis

In the Spotlight: US Inflation and GDP Data

In the final trading sessions of May, leading currencies have been in a downward trend against the dollar. For instance, the pound/dollar pair lost over 100 pips in a single day, euro sellers in the EUR/USD pair are

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.