GBP/USD: Cable Bulls Grasp on to Fibonacci for Support

GBP/USD Talking Points:

– The British Pound continues to hold on to September gains despite a headline-driven sell-off in the latter portion of last week. The support level we looked at came into play as the Friday low which held into this week before buyers pushed a bounce in the pair. At this point, GBP/USD is holding support at a key Fibonacci level of 1.3117, but this may be a trap and traders would likely want to treat this observation with extreme caution until more information can be had.

– While a weak US Dollar and a stronger economic backdrop could support continued GBP gains, this is a headline-driven scenario that we’re dealing with as there is still very little clarity around Brexit negotiations. Traders speculating in GBP pairs will likely want to take into account the potential for continued two-way volatility as this theme remains in the spotlight.

– Quarterly Forecasts have just been updated, and the Q3 forecast for GBP/USD is available from the DailyFX Trading Guides Page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And

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