- Summary:
- GBPUSD pair was struggling to clear the resistance at 1.3168 but dovish statement from FED refueled the cable bulls.What might happen next?
On Wednesday, FED chairperson Jerome Powell delivered a dovish statement. Based on his statement, it’s very obvious FED has no interest to hike the interest in 2020. The GBPUSD pair was struggling to clear the resistance at 1.3168. But the bulls surged through this resistance zone after FOMC meeting minutes. Currently, the bulls are eyeing on the next critical resistance level at 1.3271.
A daily closing of the price above that level might push the GBPUSD pair towards the next resistance at 1.3350. This level might cap the bullish rally. Any bearish price action signals might indicate the end of the medium-term bullish trend.
On the downside, we might see some minor correction in the GBPUSD pair. The first initial bearish target for the pair lies at the support at 1.3200. Closing below this level might result in a deeper correction. If the bears manage to push the price down to 1.3168 zone, the bulls might be a trouble.
A daily closing of the price below the 1.3168 zone might push the price lower towards the critical support at 1.3113. This level might provide a significant amount of buying momentum to the GBPUSD pair. Any bullish price action signals at that level might bring the buyers in the market. However, expecting such a deeper correction might require a strong fundamental catalyst. Considering all the parameters, the overall bias for the GBPUSD pair remains bullish with a possibility for a bearish correction.