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Nov 30 - 06:55 AM

GBP/USD - COMMENT-Monthly Chart Hints At A Bullish December For Sterling

By Peter Stoneham  —  Nov 30 - 05:10 AM

Sterling might have turned a corner having lost nearly 28% in value to the dollar between May 2021 and September 2022.
GBP/USD is set for back-to-back monthly gains as November ends.

The monthly chart might be giving clues on longer-term direction having recorded a significant reversal signal in September.
The shorter-term charts continue to show volatility as the fundamental backdrop triggers big swings in the spot price.
However, September's hammer candle, which can warn of a trend reversal, and the subsequent bullish confirmation in October could bode well for sterling through December.

If sterling ends November above 1.1495, the month's opening level, the bull reversal could then target a major 50% Fibonacci retracement level at 1.2280, taken from the 1.4233 to 1.0327 May 2021 to September 2022 drop.

Sterling could extend its recovery into early 2023 and an Ichimoku cloud twist for March, with 1.2895-1.3036 parameters, might pull the market higher.
Cloud twists can appear to attract price action.

For more click on FXBUZ


Source:
Refinitiv IFR Research/Market Commentary

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