All Articles Tagged - GBPUSD

Market Comment – China cuts rates but stocks mixed, strong GDP fails to lift the yen

Posted on August 15, 2023 at 9:22 am GMT

China unexpectedly cuts key lending rate as weak data keeps pouring in, yuan skids Japanese growth surges in Q2 but yen hits fresh low, sparking intervention fears US retail sales eyed as tech stocks rally despite soaring yields Yuan slumps after rate cut as China concerns mount China’s central bank announced a surprise rate cut on Tuesday, lowering its one-year medium-term lending facility by 15 basis points to 2.50%. The seven-day reverse repurchase rate was also cut, but by a [..]

Technical Analysis – GBPUSD rally loses power, all eyes on 1.2610

Posted on August 15, 2023 at 7:07 am GMT

GBPUSD has been on the retreat for one month now, trading below a short-term downtrend line and its 50-day moving average (MA). But in the bigger picture, the pair is still in an uptrend that started back in September. This misalignment puts extra emphasis on the 1.2610 region. If sellers pierce below this area, it would mark a lower low on the daily chart, sending a strong signal that the longer-term uptrend has started to break down. Momentum oscillators like [..]

Technical Analysis – Could the GBPUSD bears finally deliver a proper sell-off?

Posted on August 11, 2023 at 1:29 pm GMT

GBPUSD is edging high today but it remains under bearish pressure since the July 14 peak of 1.3141. It is currently battling its way through the busy 1.2750-1.2762 area. This is actually the first attempt by the bears to trade decisively below the March 8, 2023 upward sloping trendline. The current short-term bearish trend is clearly depicted in the momentum indicators. The RSI is edging lower and trying to record a new lower low. Additionally, the Average Directional Movement Index (ADX) has [..]

Week Ahead – Fed minutes, US retail sales and UK CPIs the highlights of a packed week

Posted on August 11, 2023 at 9:30 am GMT

The dollar pulled back after the miss in the US inflation data, but traders may have another opportunity to adjust their dollar positions as next week’s agenda includes the minutes from the latest Fed meeting and the retail sales for July. The pound will also enter the limelight as the UK CPIs could confirm whether investors were correct to slash their hike bets following the latest BoE gathering. Other releases include the RBNZ decision, where no action is expected, and [..]

UK economy to sustain weak growth pace – Preview

Posted on August 10, 2023 at 12:09 pm GMT

The UK economy has probably narrowly escaped a recession in the first half of the year flash Q2 GDP data are expected to show on Friday at 06:00 GMT. On the other hand, inflation is still the elephant in the room and another poor GDP report could do little to scale down expectations for a rate hike next month. With public finances following an unstable path and chances for a decent recovery moving further into the horizon, the pound may not like [..]

Technical Analysis – GBPUSD stays resilient above crucial support

Posted on August 8, 2023 at 8:12 am GMT

GBPUSD closed higher than its 50-day SMA and the resistance trendline from October 2022 on Monday, indicating a higher chance for more positive sessions. Moreover, the doji candlestick printed at the bottom of the bearish channel on August 3 was followed by two green candlesticks, promoting an extension towards the channel’s upper boundary at 1.2855. The 20-day SMA and the broken ascending trendline from May are within a breathing distance too, at 1.2880 and 1.2925 respectively, while in the weekly chart, the [..]

Weekly Technical Outlook – EURUSD, GBPUSD, AUDUSD

Posted on August 7, 2023 at 2:21 pm GMT

After a mixed US employment report, traders will assess CPI inflation readings on Thursday for clues on the Fed’s next interest rate decision in September. The UK will report GDP growth figures on Friday, while in Asia, China’s CPI inflation and trade figures might deliver new hints on Beijing’s stimulative policy on Tuesday and Wednesday, respectively. Hence, this week’s calendar events could make EURUSD, GBPUSD and AUDUSD worthy to watch. US CPI inflation –> EUR/USD The US employment growth slowed surprisingly to [..]

Week Ahead – US inflation report coming up as dollar storms higher

Posted on August 4, 2023 at 10:04 am GMT

The spike in US yields this week gave the dollar a boost, but the longevity of this recovery will be decided by the next edition of US inflation. According to the Cleveland Fed Nowcast model, there is some scope for an upside inflation surprise, which would be a blessing for the dollar. Aside from this release, there isn’t much else that can disturb the waters next week. Dollar shines ahead of inflation test Global markets are still reeling from the [..]

Market Comment – Equities left reeling from yields spike, FX quiet ahead of NFP

Posted on August 4, 2023 at 9:23 am GMT

China support aids rebound in stocks after bruising week amid surging yields Dollar steady as markets brace for possible surprises in July jobs report Pound off lows but BoE offers little upside, aussie crawls higher too Mood improves as bond rout eases before NFP Global equity markets started Friday on a somewhat more optimistic tone after coming under heavy selling pressure this week from a spike in bond yields even as major central banks signal doubts about the need for [..]

Technical Analysis – GBPUSD hits one-month low after BoE

Posted on August 3, 2023 at 2:08 pm GMT

GBPUSD slumped below 1.2700 on renewed selling pressure on Thursday after failing to climb back above the broken support trendline from October 2022 at 1.2740. The Bank of England’s policy announcement during today’s session added more pressure on the market, sending the price as low as 1.2619. Despite that, the pair recouped a sizeable portion of its earlier losses and stood again around the 1.2665 level and the lower boundary of the bearish channel. The RSI and the stochastic oscillator are hinting [..]

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