Market news
17.05.2023, 19:48

GBP/USD Price Analysis: Bears are moving in on the risk rally

  • GBP/USD bulls hit a brick wall in the Wall Street risk rally.
  • The daily chart offers a bearish scenario for the days ahead. 

GBP/USD is back to flat in the day after initial losses that were sparked in the face of the Bank of England Governor Andrew Bailey reiterating that he expected price pressures to ease, as soon as April. Also, data showed Britain's jobless rate rose to 3.9%, while the rate of increase in total pay held steady. At the time of writing, GBP/USD is trading near 1.2490 and is correcting lower from a 4-hour resistance area. 

GBP/USD daily chart

The M-formation is a topping pattern that has formed as the potential for the final stage of the prior bullish rally. The price is now on the backside of that trendline, so shorts could be the more favorable playbook for traders:

GBP/USD H4 chart

The price has shot up to test resistance and while there are prospects of an onward continuation, the price can easily head lower as illustrated in the chart above. 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location