Two trades to watch: Gold, GBP/USD
Fiona Cincotta March 17, 2021 7:27 AM
Gold's recovery depends on the Fed. GBP/USD trades in range ahead of the FOMC.
Gold's recovery depends on the Fed
Learn more about trading gold
GBP/USD all eyes on the Fed
Where next for GBP/USD ?
GBP/USD trades below a descending trendline dating back to late February. Although it has been range bound between 1.40 and 1.38 since early March. The RSI is nuetral at 50 supporting evidence that GBP/USD trades with a neutral bias.
Therefore, it could be prudent to wait for a post Fed break out trade. Any move high need to break through 1.3925 the descending trendline before 1.3955, last week’s high comes into play. It would take a move above 1.40 psychological level for buyers to gain momentum and look back towards 1.4240 high.
On the flip side, failure to break 1.39 could see the pair head back towards 1.38 yesterday’s low, beyond here the sellers look towards 1.3550.
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