GBP/USD -The Uptrend May Continue but a Retest of 1.2000 is Possible for the Pair
Take Profit: 1.2400
Stop Loss: 1.2200
Timeline: 1-2 days
Sell Stop: 1.2290
Take Profit: 1.2200
Stop Loss: 1.2350
With Switzerland’s second biggest bank Credit Suisse collapsing, we could see the pound rising to 1.2273 which was also the peak price since 2nd Feb this year. The market responding to the crisis of the banking sector somehow led to a recovery for the cable pair. The banking stocks in the Euro zone were falling after there was news about the merger of 2 major banks by Swiss authorities. The state of the banking sector is not any different in the US as well. But the US stock market continued to stay strong despite this. The key events for the pair will be the upcoming interest rate decisions from Fed and BOE. The impending UK inflation data release is also something to look forward to for the pair.
We saw the pair price crossing the important resistance point at 1.2200 on the 4H charts. This also means the double top pattern formed is not valid anymore. We also noted the pair price crossing the 25-day and 50-day EMAs along with going above the 50% Fibonacci Retracement point. The RSI has shifted to the overbought level and the bullish trend looks firm as of now. So, we can see the uptrend going on for the pair but the possibility of a retest is there as well.