- November 26, 2024
- Posted By: james w
- Category: Market News
GBPUSD Price Action Below Ichimoku Cloud
The GBP/USD currency pair, commonly referred to as “Cable,” reflects the exchange rate between the British Pound (GBP) and the US Dollar (USD). Known for its high volatility, this pair is heavily influenced by economic data and central bank policies from both the United Kingdom and the United States.
Today, the GBP faces pressure as the CBI Realized Sales index, projected to improve slightly from -14 to -6, may still indicate weak retail conditions. Meanwhile, a speech by MPC Member Pill could offer insights into the Bank of England’s monetary policy stance. Across the Atlantic, the USD may find support from positive CB Consumer Confidence data and New Home Sales, suggesting economic resilience. The Richmond Manufacturing Index, however, points to challenges in the US manufacturing sector. The FOMC Meeting Minutes later today will be a critical driver, as investors seek hints regarding the Federal Reserve’s future policy direction.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
The GBP/USD H4 chart shows a strong bearish wave, with the price line now testing a critical support level. However, this support level appears to be failing, as the price has fallen below the Ichimoku Cloud and the 100-period Moving Average, both confirming the bearish momentum. The Ichimoku Cloud’s bearish setup, with the price decisively below it, highlights the dominance of sellers. The downward-sloping 100-period MA further supports this trend. The current price action suggests that the GBP/USD pair may see further declines unless strong fundamental catalysts emerge. Traders should watch for a breakout below the current support to confirm continued bearish movement.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.