GBPUSD Recovers As Yields Fall And Technicals Propel The Pair Higher
GBPUSD Forecast Today
The GBPUSD has recovered after plunging substantially during the European session today. The price rose above resistance between 1.1991 and 1.2010, and with that break, it surged directly up to retest a cluster of moving average resistance, beginning with the GBPUSD bouncing higher into MA resistance.
- 200-day moving average at 1.20394.
- The 100-hour moving average of 1.20451, and
- The 200-hour moving average is 1.2054.
The top price reached 1.20568 before reversing to the negative. As I type, the price is back at 1.2020, aiming to retest the high of the swing range between 1.1991 and 1.2010. As the pair's trading dynamics shift to ups and downs, that region will be watched for support. In the short term, the swing area remains an important indicator. Keeping above is more bullish. Moving down is more bearish.
US rates are falling, with the 10-year yield currently down -8.5 basis points. Meanwhile, equities have swung back to the negative, rapidly removing the "New Year's joy" from the market. The Dow Jones Industrial Average is down -0.20%. The S& P 500 is down -0.35%, while the Nasdaq is down -0.58%.
Fundamentally, the S&P global manufacturing PMI was lower than expected, while construction spending was somewhat higher (but few expect a miraculous turnaround in building/housing anytime soon).