GBPUSD Bulls’ Advance Unrelenting to 1.3800 As BoE Downplays Negative Interest Rate

GBPUSD Bulls’ Advance Unrelenting to 1.3800 As BoE Downplays Negative Interest Rate

GBPUSD Price Analysis – February 7

The GBPUSD pair has been holding onto its uptrend despite some range trading. The pairs bulls stay unrelenting to the 1.3800 high zones as the Bank of England downplays negative interest rates boosting the pound against the soaring US dollar.

Key Levels
Resistance Levels: 1.4345, 1.4000, 1.3800
Support Levels: 1.3624, 1.3519, 1.3451
GBPUSD Long term Trend: Ranging
The daily chart implies that the pair has consolidated beyond its 5 and 13 moving averages, which lack directional strength, while the relative strength index is consolidating just beyond its midlines. GBPUSD has broken past the round figure at 1.3700 and has now reached highs around 1.3740 level as the US dollar dwindles.

A decisive breakout may occur on sustained trading outside of the upside channel resistance, which is now at 1.3800. The pattern may validate a mid-term bottom at 1.2675 low. Nonetheless, a deviation at 1.3566 prior week low will preserve medium-term bearish sentiment for another decline beneath 1.3519 level at a later phase.
GBPUSD Short term Trend: Ranging
The GBPUSD pair rose from the 1.3655 prior weeks low and broke the 1.3700 level. But since a temporary high has formed after the resistance at 1.3700, the initial bias is bullish initially this week. On the other hand, a break below 1.3624 may aim for a reversal trend from 1.3738 to 1.3566 from 1.2675 to 1.3700 levels.

In such a scenario, short-term sentiment may stay ranging as long as the support level at 1.3519 remains intact, in a steeper pullback scenario. Meanwhile, some subsequent sell-offs could leave the GBPUSD vulnerable to further slide beneath 1.3500 towards the 1.3451 congestion zone.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.