Pound Prints Higher High, Is This Time To Buy Cable?

FXOpen

The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Monday, increasing the price of GBPUSD to more than 1.2950 as bulls seem to gain strength. The technical bias has already turned bullish in short term because of a Higher Low and Higher High in the recent wave. After leaving a couple of bullish pin bars on a monthly chart, cable looks all set to rebound in the long term as well.

Technical Analysis

As of this writing, the pair is being traded near 1.2977. A hurdle can be seen around 1.3000, the psychological number and then 1.3296, the swing high of the latest major upside rally. A break above the 1.3296 resistance will confirm the ongoing bullish bias, validating a move towards the 1.3500 resistance area in the long run.

Pound Prints Higher High, Is This Time To Buy Cable?

On the downside, the pair is expected to find a support around 1.2915, the intraday low of Friday ahead of 1.2865, the swing low of the recent downside move and then 1.2796, the post Brexit low. The technical bias will remain bullish as long as the 1.2865 support area is intact.

US Manufacturing PMI

Activity in the US manufacturing sector registered a larger-than-expected decline in September, amid the slowest expansion of new orders this year, according to the preliminary data released on Friday. In a report, market research group Markit said that its flash manufacturing purchasing managers’ index (PMI) dropped to 51.4 in September from the prior month’s final reading of 52.0. Analysts had expected the index to decrease to 51.9 this month. On the index, a reading above 50.0 indicates expansion, below indicates contraction.

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

Market Analysis: The Yen and European Currencies Headed to New Lows Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar Market Analysis: US Dollar On the Rise Despite Weak PMI Data Market Analysis: GBP/USD Nosedives While USD/CAD Aims Higher

Latest articles

Forex Analysis

Market Analysis: The Yen and European Currencies Headed to New Lows

The main currency pairs began the last five-day trading period of September with a new wave of growth for the American currency. Changes in the Fed's point forecast for next year provided powerful support to the dollar, which, in turn,

Forex Analysis

Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

In an intriguing turn of events, the US Federal Reserve has hinted at the possibility of yet another interest rate hike in the near future, keeping financial markets on their toes. During its September 2023 meeting, the Federal Reserve chose

Forex Analysis

USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar

The reason for the stable trend, as we have repeatedly pointed out, is the difference in the monetary policy of the USA and Japan. Inflation in Japan has been above 2% for more than a year, and the media 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.