Market Analysis

Will Carney’s speech have the same effect on the GBP/USD as last week’s labour market data?

Good figures from the British labour market gave the British pound a boost last Tuesday and promoted the currency against the US dollar, over the key resistance at 1.3045 dollars. Since then, this area has been tested several times but has not been sustainably overcome.

The Economic Calendar for today, Monday, at 10 a.m. GMT features a speech by Bank of England Governor Mark Carney. This may have an impact on the currency pair. The question is whether the currency pair can reach the old highs from the end of January.

Another important factor for further rising prices is the defense of the structural area of 1.3045. The next resistance on the way further up could then directly follow this zone. In the range between 1.3133 and 1.3211, there are specific structures from the recent past. This region could function as the first significant resistance level. If this range is breached, the next short-term resistance could be in the 1.3318 range.

The MACD is in positive territory. The indicator has crossed its trigger line from downside to upside. The histogram is also in positive territory.

On the downside, the market could be sustained in the 1.2936 area. However, it is essential to prevent a slide below the 1.2760 area. This would cloud the picture. The next support could then be waiting in the range of 1.2557.


GBP/USD Daily Chart | Source: ActivTrader

GBP/USD Daily Chart | Source: ActivTrader 


Written by Daniel Schuetz, External Analyst


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