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27.09.2021 08:34 AM
Breaking forecast for GBP/USD on September 27, 2021
The positive effect of the Bank of England's board meeting has not been long-lasting. On Friday, the bearish trend in GBP/USD resumed. The US Federal Reserve's large-scale tapering and the ongoing energy crisis in Europe were among the factors that caused a drop in the price. The greenback skyrocketed at the very opening of the North American session when the forecast for durable goods orders due today was revised. Initially, the reading was estimated to drop by 0.2%. However, the forecast was upwardly revised, and durable goods orders are now projected to rise by 0.4%. This is unlikely to somehow affect retail sales, meaning that consumption is likely to continue recovering. Today, the US dollar is expected to extend its rally.

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United States Durable Goods Orders:

The volume of short positions in GBP/USD has partially recovered after a rally on September 23. The price reversed from the 23.6% Fibo level that is also seen as resistance.

A drastic price change in the short term has caused an overbought status in the market. The signal is also confirmed by the Relative Strength Index (RSI) that jumped by 80 pips. Amid the recovery of the greenback, the indicator returned below 50.

Outlook:

Amid a corrective move in the market, the price may go to the swing low of 1.3600 as of August 20. A sell signal may be generated when the quote consolidates below 1.3650.

In terms of complex indicator analysis, technical indicators are making a sell signal for short-term and intraday trading.

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Dean Leo,
Analytical expert of InstaForex
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