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US Dollar weakness supporting the GBP/USD upside move;

Jun 25, 2019 (08:24)

by John Knobel

GBP/USD jumps +200 pips last 5 days;

Longest upside move since April

Market Drivers

GBP/USD pair jumps higher as expectations that the US Fed will cut US interest rates makes the GBP more attractive;
US Dollar weakness supporting the GBP/USD upside move;
GBP/USD short squeezed higher after the move above the 1.2737 resistance triggered short sellers stop losses;

Charts

GBP/USD reward / risk seen as +330 pips upside and -180 pips downside; current price has broken above the 1.2737 resistance; multi-month trading range up-side break-out potential provided 1.2737 can hold as new support; current price trading above its 4,9 and 18 period moving averages (bullish); RSI buy signal spotted on daily chart. Upside target for longs 1.3085; downside target for shorts 1.2630.

Gold prices broke out to record a +$80 5 day gain on prospects that the US will cut interest rates making gold more attractive for non-USD investors; current price $1.430 is within the April 2018 high to August 2018 low 1.23.6 tp 138.2 extension, a break above $1,445 opens up potential move towards the 2nd extension near $1,490's; downside $1,350.

Source: Bloomberg

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