All Articles Tagged - GBPUSD

Technical Analysis – GBPUSD slides but remains stuck in rangebound pattern

Posted on January 16, 2024 at 9:29 am GMT

GBPUSD experiences losses in the past couple of sessions But its short-term sideways structure holds Momentum indicators turn slightly negative GBPUSD had been trending higher within an upward sloping channel, posting a fresh four-month peak of 1.2826 in late December. Nevertheless, the rally seems to have taken a breather, with the price trading without a clear direction since the beginning of the year. Given that the short-term oscillators are providing cautiously negative signals, the bears could attempt to push the price [..]

Volatility Report – January 16, 2024

Posted on January 16, 2024 at 8:15 am GMT

Volatility crashed across the FX spectrum including EUR/USD and JPY crosses Gold and Silver volatility drops; oil and Bitcoin set for sizeable moves Stock indices in turbulent waters, JP225 volatility records a new monthly high The recent range-trading in EUR/USD has caused the expected volatility to drop to the lowest level of the past month, despite some key data releases. This expectation for small price movements going forward is also depicted in the remaining currencies covered in this report and predominantly [..]

Market Comment – Rate cut bets surge again but dollar goes sideways, stocks muted

Posted on January 15, 2024 at 10:39 am GMT

Fed rate cut expectations go into overdrive after soft US producer prices Bond yields slip, but dollar little changed and mixed earnings weigh on stocks Focus shifts to Chinese growth and global inflation trends this week March rate cut back in play After brushing aside a hotter-than-expected CPI report last week, investors betting on an imminent pivot by the Fed were emboldened on Friday from a very soft set of producer prices. The final demand producer price index edged up [..]

Weekly Technical Outlook – EURUSD, GBPUSD, AUDUSD

Posted on January 15, 2024 at 9:55 am GMT

EUR/USD resilient below 1.1000 as US retail sales awaited UK CPI to fall but will GBP/USD extend rebound? China’s GDP growth could rise; AUD/USD looks for pullback US retail sales –> EUR/USD Retail sales will be the main focus in the US, while the other releases will primarily consist of second-tier data. Although there has been a deceleration in US consumer spending following a rise throughout the summer, it is not expected to see a sudden and drastic decline. In [..]

Will the UK inflation data pour cold water on BoE rate cut bets? – Preview

Posted on January 12, 2024 at 1:46 pm GMT

BoE highlights “higher for longer” message in December Yet, investors are penciling in aggressive rate reductions CPI inflation data for December could well impact that view The numbers are scheduled for Wednesday at 07:00 GMT Investors don’t pay attention to BoE’s signals At its December policy gathering, the Bank of England kept interest rates unchanged via a 6-3 vote, with the three dissenters preferring to increase the Bank rate by another 25bps to 5.5%. In the accompanying statement it was [..]

Week Ahead – China GDP and December CPI reports eyed amid rate cut frenzy

Posted on January 12, 2024 at 11:56 am GMT

China reports Q4 GDP data on Wednesday; is a rebound in store? CPI numbers due in UK, Japan and Canada Retail sales to be the main focus in the US Is China’s recovery getting back on track? The Chinese economy suffered several wobbles in 2023, as the property crisis went from bad to worse. Markets held their breath for a major stimulus announcement, but with one eye on deleveraging, authorities’ response only went as far as offering targeted drip-feed measures, [..]

Technical Analysis – GBPUSD higher; key level at 5-month high

Posted on January 11, 2024 at 1:27 pm GMT

GBPUSD remains positive in short- and medium-term timeframes Negative divergence by MACD GBPUSD is rising again after the several attempts to move beneath the 20-day simple moving average (SMA) and the near-term uptrend line. The 50- and the 200-day SMAs posted a bullish crossover in the preceding sessions, indicating more upside pressures. According to technical indicators, the MACD has been holding beneath its trigger line since the beginning of December where the price was moving higher, creating a negative divergence [..]

Volatility Report – January 9, 2024

Posted on January 9, 2024 at 9:21 am GMT

EUR/USD and GBP/USD volatility picks up, JPY crosses seem quiet Gold and Silver volatility inches lower, oil and Bitcoin set for big moves US indices in calm waters; DAX and JP225 volatility at monthly highs EUR/USD expected volatility remains high after a market moving NFP report and ahead of the US CPI data on Thursday. On the flip side, yen crosses are expected to experience very low volatility going forward. In commodities, gold and silver implied volatility has fallen substantially [..]

Technical Analysis – GBPUSD gains some confidence for new higher high

Posted on January 9, 2024 at 8:47 am GMT

GBPUSD returns above key support trendline, reduces negative risks Technical signals are encouraging for a continuation to 1.2850-1.2900 GBPUSD stepped on the 20-day simple moving average (SMA) and climbed back above the broken short-term support trendline from October at 1.2720, reviving hopes that the soft four-day bullish wave could gain extra legs in the coming sessions. The positive trajectory in the RSI and the stochastic oscillator is endorsing the bullish case, increasing the odds for a bounce towards the 1.2850-1.2900 resistance [..]

Pound looks to UK GDP rebound to keep bears at bay – Preview

Posted on January 9, 2024 at 8:37 am GMT

UK GDP likely expanded in November, potentially dashing hopes for early rate cut But any disappointment would increase the odds of a technical recession Data due at 07:00 GMT, Friday, will be key to sustaining pound’s uptrend Confounding expectations The British pound was the second best performing major currency of 2023, ending the year with gains of 5.2% against the US dollar. Unfortunately, the pound’s bullish streak had more to do with out-of-control inflation than an exceptionally strong economy, but [..]

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