GBP/USD RSI Flirts with Overbought Territory- Opening Range in Focus

Talking Points:

GBP/USD Dec Opening Range in Focus as RSI Flirts with Overbought Territory.

Dovish RBNZ Rhetoric to Fuel NZD/USD Weakness; 2017-Low Remains on a Radar.

DailyFX TableGBP/USD

The British Pound stays bid entrance into a initial full week of December, and GBP/USD might continue to vaunt a bullish function over a entrance days as a U.K. and European Union (EU) in. towards a Brexit agreement.

Market participants are approaching to compensate tighten courtesy to a headlines entrance out of a U.K. as Prime Minister Theresa May meets with EU officials and is scheduled to seem in front of a House of Commons for questions after this week. Progress towards a subsequent proviso of negotiations might keep Sterling afloat as it curbs a risk for a ‘hard Brexit,’ and a pound-dollar sell rate might continue to benefit belligerent forward of a Bank of England’s (BoE) final 2017 assembly on Dec 14 as a executive bank starts to pierce divided from a easing-cycle.

Even yet a BoE is widely approaching to keep a benchmark seductiveness rate during 0.50%, Governor Mark Carney and Co. is approaching to ready U.K. households and businesses for aloft borrowing-costs as ‘most new comment of a opinion for acceleration and activity, contained in a Nov Inflation Report, was conditioned on a marketplace trail that pragmatic dual additional 25 basement indicate increases in Bank Rate over a three-year foresee period.’ In turn, a BoE might stay on march to broach one rate-hike per year, and a change in financial process might keep GBP/USD within a ceiling trending channel from progressing this year generally as a bullish movement appears to be entertainment pace.

GBP/USD Daily Chart

GBP/USD Daily Chart

  • Broader opinion for GBP/USD stays constructive, with a span during risk of creation a run during a 2017-high (1.3657) as a Relative Strength Index (RSI) extends a bullish arrangement from Nov and flirts with overbought territory, with a mangle above 70 lifting a risk for a serve allege in a sell rate.
  • Need to keep a tighten eye on a monthly opening operation as GBP/USD struggles to transparent a 1.3560 (50% expansion) region, with a subsequent topside jump entrance in around 1.3690 (61.8% expansion) to 1.3700 (38.2% expansion) followed by a Fibonacci overlie around 1.3830 (61.8% retracement) to 1.3870 (78.6% expansion).
  • Will keep a tighten eye on a former-resistance section around 1.3280 (23.6% expansion) to 1.3300 (100% expansion) for uninformed support, that sits above a 50-Day SMA (1.3241).


NZD/USD struggles to reason a belligerent forward of a subsequent Global Dairy Trade (GDT) auction on Dec 5, with a span during risk for serve waste should a Reserve Bank of New Zealand (RBNZ) continue to validate a wait-and-see proceed for financial policy.

With Whole Milk Powder prices constrictive 2.7% during a final GDT eventuality on Nov 21, RBNZ behaving Governor Grant Spencer might mostly echo ‘monetary process will sojourn accommodative for a substantial period’ as a executive bank conduct is slated to broach a debate patrician ‘low acceleration and a implications for financial policy.’ A uninformed collection of dovish tongue might fuel a near-term debility in NZD/USD, with a span during risk of fluctuating a pointy decrease from behind in Oct as the bloc supervision underneath Prime Minister Jacinda Ardernretains their pledge to examination and correct a executive bank’s mandate.

NZD/USD Daily Chart

NZD/USD Daily Chart

  • Broader opinion for NZD/USD stays slanted to a downside as both cost and a Relative Strength Index (RSI) safety a downward trends carried over from a summer months, with a downside targets still on a radar following a unsuccessful try to exam a November-high (0.6980).
  • Still watchful for a break/close subsequent a 0.6820 hurdle to open adult the 2017-low (0.6780), that mostly lines adult with a Fibonacci overlie around 0.6780 (100% expansion) to 0.6790 (50% retracement).
  • May see a Relative Strength Index (RSI) bluster a bullish arrangement carried over from a prior month as it comes adult opposite trendline support, with a mangle of a near-term structure lifting a risk for a serve decrease in a sell rate, with a subsequent downside aim entrance in around 0.6740 (61.8% expansion) followed by 0.6710 (61.8% expansion).

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