DailyFX.com -

Talking Points:

- Larger GBP/USD Rebound Favored on Bullish RSI Break

- AUD/USD Clears 0.93330-40 Resistance Ahead of RBA Policy Meeting

- USDOLLAR RSI Falls Back From Overbought, Threatens Bullish Momentum

For more updates, sign up for David's e-mail distribution list.


GBP/USD Risks Larger Rebound as RSI Threatens Bearish Momentum

  • Relative Strength Index (RSI) appears to be breaking out of bearish trend as GBP/USD climbs to a fresh weekly high of 1.6604.
  • Need a close above 1.6600-10 (61.8% retracement) for confirmation/conviction for a larger rebound.
  • Nevertheless, the DailyFX Speculative Sentiment Index (SSI) continues to show that retail crowd remains net-long on GBP/USD as the ratio stands at +1.57.


GBP/USD Risks Larger Rebound as RSI Threatens Bearish Momentum

  • Will look at the broader AUD/USD range as the pair climbs back above former support around 0.9330-40 as the RSI appears to be breaking out of the bearish momentum.
  • Reserve Bank of Australia (RBA) is widely expected to keep the benchmark interest rate at 2.50%; will Governor Glenn Stevens toughen the verbal intervention.
  • Next key topside target comes in around 0.9380 (38.2% retracement) to 0.9390 (38.2% retracement) should we see a close above former support.

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: In Search of A Low in the Euro Next Week

Sharp CAD Reversal Negates USD/CAD Bull Flag, Stuns EUR/CAD, GBP/CAD






Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index






GBP/USD Risks Larger Rebound as RSI Threatens Bearish MomentumGBP/USD Risks Larger Rebound as RSI Threatens Bearish Momentum

Chart - Created Using FXCM Marketscope 2.0

USDOLLAR(Ticker: USDollar):

  • Seems like the Dow Jones-FXCM U.S. Dollar Index has marked a near-term top at former support; bearish break on RSI to provide confirmation/conviction for larger decline as the oscillator comes off of resistance.
  • Still want to see the USDOLLAR fill the weekly opening gap on a close-basis; will look for a higher-low given recent series.
  • Former resistance around 10,555 (50.0% retracement) to 10,561 (100% expansion) in focus amid the risk for a more meaningful USDOLLAR correction.

Join DailyFX on Demand for Real-Time SSI Updates!





MBA Mortgage Applications (AUG 22)




Click Here for the DailyFX Calendar

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!