One of the money market-leading pairs, the GBP/USD, had a high trading point on Tuesday following its successful getting support close to the 1.3505 barriers and an upward support line drafted from the low levels of January. In as much as the rates remain over the line, the market will maintain a positive position.
GBP/USD price chart. Source TradingView
Bulls’ Field Day
If the bullish trend continues in this path, then the market could very soon see the pair scaling over the 1.3615 obstacles. It will then verify that there will be another level of high to come in the future on the four hours’ as well as the daily charts.
That kind of move has the potential of initially making a way leading to the peak achieved on the 20th of January at about 1.3660 or possibly the 1.3690 levels which have been marked by the high of 17th January. If the bullish move does not stop there, then there could be a further climb in the direction of the high gained on 13th January at 1.3750.
Shifting the focus to near-term oscillators, it can be observed that the relative strength index stands over 50 basis points and above. Likewise, the moving average convergence divergence runs a little over its trigger and zero lines, both pointing up. The two indicators ascertain upward acceleration and aid the notion for more advances.
More Hope for Bears
As a means of beating the bearish situation, there may have to be a definite dip under 1.3490. If this happens, it will go beyond confirming an impending lower than low level but a break under the upward line as well, taken from 28th January’s low level.
Bears may then be able to gun for the 1.3435 level barriers, which is marked by 1st February’s low. It is the point where another break may stretch the fall in the direction of 1.3395 levels, further marked by 31st January’s low levels.
A little lower than that is the 1.3365 level barrier which is described as a support by the low levels of 27th and 28th January. That level may also get tested.
Following the Bank of England’s policy meeting just last week and the resultant announcement of a hike in interest rates by just 25 basis points, the pounds sterling held on to its high selling point, with investors keeping hope highly alive. The bank went ahead to inform the public that of the nine MPC voting members, only four of them voted to have the interest rate increased by 50 basis points.