The GBPUSD is currently trading below the monthly Value Area Low, is this a sign of more downside to come, or will the GBPUSD trade back within value?
Watch the video to learn more…
The GBPUSD price remains under pressure this week as the USD continues to strengthen. The recent GBP services PMI data came in higher but manufacturing PMI came in lower, this mixed data isn’t helping the GBP find any fresh bids. Energy crisis risks across the UK and Europe are also adding pressure and keeping the markets in a risk off environment. This type of market can see the USD remains strong.
Looking at the 4hr chart with the monthly volume profiles we can see that the price is currently trading below monthly value area low. This could see the price continue to trend lower. However, if the price were to break back through the value area low and close above this level, we could look for opportunities for the price to trade to the other side of value. This would take the USD to lose significant strength which is looking unlikely at the moment. Federal Reserve Chairman Powell is talking at the Jackson Hole Symposium this week and could give insights into future plans for the Fed. A dovish tone could help the USD to weaken and see GBPUSD trade higher.
Did you see our Volume Profile Analysis? You can see it here.
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