Baxia Markets
February 22, 2024

GBPUSD Bulls Charge Forward, Await Impact of Key News Releases

market analysis header image

Today, all eyes are on key economic data releases from both the Eurozone (EZ) and the US. Economists forecast weaker CPI from the EZ and a mixed outlook on US existing home sales and initial jobless claims. Such mixed forecasts tend to unsettle the market, potentially triggering a shift towards risk-on assets.

GBPUSD Bulls Charge Forward, Await Impact of Key News Releases
Analyzing the 4-hour timeframe chart, GBPUSD has been steadily advancing towards the point of control of the volume profile at 1.2717. This critical level, marked by a red horizontal line, signifies an area of high trading activity. The top and bottom sides of the value area are delineated at 1.2760 and 1.2673, respectively. A breakout above the top side of the value area (a blue rectangle above the red line) would confirm GBP/USD's bullish stance, potentially leading to new higher highs.

EMA 50 is converging towards EMA 200, indicating growing bullish momentum. However, a golden cross between the EMAs, signaling a confirmed bullish trend, has yet to occur. Meanwhile, both the upper and lower bands of the Bollinger Bands are expanding, suggesting increased volatility. With prices trading on the upper band side, a break above the point of control at 1.2717 seems likely.

Oscillator indicators reinforce the bullish outlook, with RSI reaching overbought levels and MACD's signal line trading above the 0 line. This suggests that GBP/USD is currently in a bullish phase.

In summary, GBP/USD maintains a bullish trajectory, nearing the critical point of control. A breakout above this level could propel prices towards the upper side of the value area at 1.2760. In the short term, GBP/USD remains bullish, supported by positive oscillator signals.

Key Takeaways:

1. Key EZ and US economic data releases prompt market uncertainty.
2. GBP/USD advances towards critical point of control at 1.2717.
3. Confirmation of bullish trend pending golden cross between EMAs.
4. Bollinger Bands signal potential break above point of control.
5. Oscillator indicators support bullish momentum, with RSI reaching overbought levels.

Key Economic Releases to Watch Today

GBP, S&P Global/CIPS UK Manufacturing PMI 

Forecast 47.5 vs Previous 47.0

EUR, CPI (YoY) (Jan)

Forecast 2.8% vs Previous 2.9%

USD, Initial Jobless Claims 

Forecast 217K vs Previous 212K

USD, Existing Home Sales 

Forecast 3.96M vs Previous 3.78M




News Article CTA - Trading with Baxia Markets 2024

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

Subscribe by Email