After breaching the triangle resistance at 1.2937, the GBPUSD pair started to rally higher. However, the bullish rally was capped by the major resistance at 1.3167. The formation of the bearish morning star pattern and the strong NFP data before the closing of the last week indicates bearish correction might take place.
The first initial bearish target for the GBPUSD pair is the critical support at 1.3103. From that level, we might see some bullish bounce. However, if the GBPUSD bears manage to break the support at 1.3103, the bears might push the GBPUSD pair towards 1.2970 level.
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The recent bullish rally in the GBPUSD pair is at risk as long as the resistance at 1.3167 holds. A daily closing of the price above the resistance level might push the GBPUSD price towards the next resistance at 1.3200 marks. This level might provide a significant amount of selling pressure. Currently, the investors are cautiously waiting for the FOMC meeting minute and FED rate hike decision. Any hawkish statement from the FED official might create extensive selling pressure on the cable.
On the contrary, the dovish statement, might refuel the cable bulls and push the GBPUSD pair. Considering the technical and fundamental parameters, the traders are advised to stay cautious since we might experience high volatility on the FOMC meeting.Download our latest quarterly market outlook for our longer-term trade ideas.
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