GBPUSD Technical Analysis for May 9, 2024 by Guriforex

Good morning, dear traders! We are here with today’s GBPUSD trading analysis. Let’s dive into the analysis without wasting time.

GBPUSD Technical Analysis for May 9, 2024 by Guriforex

GBPUSD Technical Analysis and Trading signals for May 9, 2024 by Guriforex:

The GBPUSD pair maintains its decline, trading below 1.2500 after a 0.5% drop on Tuesday. This downward movement is influenced by a stronger US dollar, boosted by hawkish Fed remarks. As traders await the Bank of England’s Thursday policy update, the pound remains under pressure. The US dollar has strengthened due to recent hawkish comments from Federal Reserve officials. This has largely driven the movement. The US dollar strengthens, putting pressure on the pound. Traders focus on the Bank of England’s Thursday policy announcement. Expectations are high for potential impacts on GBPUSD.

From a technical perspective, chart analysis reveals that the GBPUSD pair has exited the uptrend channel that had previously guided its movements over an extended period. This breakout suggests a shift in market sentiment, potentially ushering in further bearish momentum. Technical indicators now point to possible further declines, as the market may test the breakout zone once more. During this retest, if the price fails to reclaim its position within the channel, it could confirm the bearish outlook, leading traders to continue adopting a selling strategy.

Looking ahead, the focus remains squarely on the Bank of England’s policy decision. Depending on the tone and content of the announcements, significant volatility could be seen. If the Bank of England presents a dovish stance or signals concerns about economic growth, the pound could face additional downward pressure. Conversely, any unexpected hawkish turns could provide the pound with some support, potentially complicating the current bearish narrative. Investors and traders will be closely monitoring this event, ready to adjust their positions based on the new inputs from the central bank’s policy direction.


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