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      GBPUSD: Bears in Control as Fundamental and Technical Factors Align

      Forex Market
      Summary:

      Based on the alignment of fundamental, technical, and sentiment factors, we believe that the GBPUSD bears are in control, and it is a good time to look for opportunities to go short. The rejection of the broken support turned into resistance and a 50% FIB level provides a good opportunity to enter a short position. Traders can consider waiting for a bearish entry signal at this level before entering a short position.

      Sell GBPUSD
      End Time
      CLOSED

      1.19254

      ENTRY PRICE

      1.16500

      TGT PRICE

      1.20200

      SL PRICE

      1.23375 +0.00515 +0.41%

      946

      Points

      Loss

      1.16500

      TGT PRICE

      1.20264

      CLOSING

      1.19254

      ENTRY PRICE

      1.20200

      SL PRICE

      The GBPUSD pair has been experiencing a bearish sentiment as the fundamentals, technicals, and sentiment continue to align, indicating a possible further decline. As we look at the daily timeframe, we can see that the fundamentals are currently bearish, with the sentiment also bearish, indicating that the bears are in control of the market.
      GBPUSD: Bears in Control as Fundamental and Technical Factors Align_1The technical indicators also support the bearish sentiment, with two possible setups in the offing. The first setup would be a pullback to a previous area of support that the price broke past. If the price were to test this area for resistance and it was to hold, then once we get a bearish entry signal, we would look to enter. The second setup would be a break of the current level of support and a retest of that level for resistance. If this level was to hold as resistance and we got a bearish entry signal, then we would look to enter short.
      The fundamental context of the market is also supporting the bearish sentiment. Fed Powell's speech, indicating that the Fed is prepared to speed up rate rises if warranted by data releases, resulted in strong bullish pressure on DXY and USD across markets. Furthermore, a few US data releases, including ADP Non-Farm Employment Change and JOLTS Job Openings, have coincided nicely with Powell's speech, beating expectations.
      All eyes will be on the NFP release tomorrow, and given the recent strong USD fundamental news release, there is reason to believe that the NFP print will come out stronger than expected, highlighting the resilience of the US economy once again. This suggests that the USD can continue heading bullish in the market, leading to a drop in GBPUSD to set new lows.
      Therefore, based on the alignment of fundamental, technical, and sentiment factors, we believe that the GBPUSD bears are in control, and it is a good time to look for opportunities to go short. The rejection of the broken support turned into resistance and a 50% FIB level provides a good opportunity to enter a short position. Traders can consider waiting for a bearish entry signal at this level before entering a short position.

      TRADE RECOMMENDATION

      SELL GBPUSD
      ENTRY PRICE: 1.1920
      STOPLOSS: 1.202
      TAKE PROFIT: 1.165
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or signal, or any other product is suitable for you based on your investment objectives and financial situation.

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      Warren Takunda

      Analyst

      Warren Takunda is an experienced financial analyst and CFO at Verge Capital in Dubai, with a proven track record in the finance industry. He leads the finance team and is responsible for financial planning, analysis, and reporting. Warren has extensive experience in financial modeling and investment analysis, which enables him to provide valuable insights to clients.

      Rank

      7

      Articles

      139

      Win Rate

      57.02%

      P/L Ratio

      1.03

      Focus on

      XAUUSD, EURUSD, GBPJPY

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