Sun, Dec 04, 2022 @ 15:29 GMT
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GBP/USD Further Increase Expected

Price has increased in the second part of the day and has managed to resume the minor upside momentum. The greenback was ruined by the FOMC and now could drop much deeper versus all its rivals.

GBP/USD moves within an ascending channel, maintains a bullish perspective in the upcoming period, even if we’ll have a minor consolidation in the upcoming weeks.

As you already know, the Federal Reserve has maintained the monetary policy unchanged, the Federal Funds Rate remains steady at 1.25%, matching expectations, but unfortunately these decisions have demolished the USD.

USDX plunged after the FOMC Statement and now is located below the 93.50 psychological level, should drop much deeper after the retest of a strong dynamic resistance. The dollar index is very heavy right now and looks unstoppable, could approach the 92.49 major static support.

Price rallied in the last few hours and is very close to jump above the 1.3125 previous high, could touch also the first upside obstacle from the 150% Fibonacci line (ascending dotted line). Technically should increase further after the retest of the upper median line (UML) of the major descending pitchfork. I’ve said in the previous articles that the sentiment will change drastically if the rate will stabilize outside the major descending pitchfork.

I’ve also said that we’ll have a buying opportunity if will come to retest also the warning line (wl1), this scenario is still possible, it was too risky to buy the retest of the UML has shown some exhaustion signs.

You can see that GBP/USD is trapped within an ascending channel, could still reach the upside line of this pattern if the USDX will slide further, the next major upside targets ar at the lower median line (lml) of the ascending pitchfork and at the 1.3527 level.

MultiBank Exchange Group
MultiBank Exchange Group
Multibank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands.

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