All Articles Tagged - GBPUSD

Technical Analysis – GBPUSD tries to overcome 50-day SMA and surpass uptrend line

Posted on February 9, 2023 at 2:20 pm GMT

GBPUSD is strengthening its momentum to the upside after the bounce off the 200-day simple moving average (SMA), which overlaps with the 23.6% Fibonacci retracement level of the upward wave from 1.0325 to 1.2450 at 1.2050. Technically, the MACD oscillator is moving sideways near the zero level, failing to show any directional signs, as the market is holding within a medium-term trading range, while the RSI is sloping upwards near the 50 level. A decisive close above the ascending line [..]

Daily Market Comment – Caution ahead of Powell after RBA’s hawkish drumbeat

Posted on February 7, 2023 at 10:21 am GMT

Equity markets struggle to get back on their feet after hawkish Bostic and RBA Dollar holds near one-month highs, aussie jumps as RBA flags more rate hikes Yen perks up on wage data, gold firmer ahead of Biden’s State of the Union speech Stocks make limited headway as Powell looms large Trading got off on a somewhat steadier note on Tuesday, with some equity markets turning positive, while the US dollar’s rebound appeared to run out of steam. But the [..]

Technical Analysis – GBPUSD forms bearish double top; confirmation required

Posted on February 7, 2023 at 9:07 am GMT

GBPUSD raised questions over its four-month-old positive trend after failing to print a new higher high above December’s peak of 1.2445, subsequently crashing below two support trendlines. Despite the latest rapid downfall, the bullish pattern remains intact as the bears have not charted a new lower low below January’s trough of 1.1840. The flattening 200-day simple moving average (SMA) and the 23.6% Fibonacci retracement of the 1.0324-1.2445 upleg are also on guard slightly higher at 1.1945 as the falling technical indicators are flagging [..]

Technical Analysis – GBPUSD fails to stay above 50-day SMA

Posted on February 3, 2023 at 2:49 pm GMT

GBPUSD is comfortably below the 50-day simple moving average (SMA), carrying on this week’s bearish move. The pair seems to be still affected by its second failure to close above the 1.2446 level, repeating the price action seen after December 15 that pushed GBPUSD towards 1.1840. Actually, the momentum indicators appear to be turning bearish at this juncture. The Average Directional Movement Index (ADX) is pointing to a weak bearish trend and the stochastic oscillator is turning aggressively lower, below its overbought [..]

Week Ahead – RBA next to hike, UK might avoid a recession (for now)

Posted on February 3, 2023 at 12:56 pm GMT

After the past week’s central bank bonanza, things will quieten down in the coming days, although not completely, as the Reserve Bank of Australia will keep the rate hike theme running. On the data front, the highlights will be Canada’s employment report and the first look at UK GDP in the final quarter of 2022. US indicators will be sparse, giving the dollar little to go on as it bounces back from the knock it took from the not-so-hawkish Fed [..]

Daily Market Comment – Euro and pound slide after ECB and BoE, NFPs enter the limelight

Posted on February 3, 2023 at 9:18 am GMT

ECB’s Lagarde signals another 50bps hike in March BoE’s Bailey says inflation is turning the corner Investors lock gaze on US jobs data ECB President Lagarde appears in hawkish suit but euro slides After the Fed, it was the turn of the ECB and the BoE to announce their monetary policy decisions yesterday. Both of them raised interest rates by 50bps as was widely expected but remarks by ECB President Lagarde and BoE Governor Bailey did not bode well for [..]

Daily Market Comment – Fed flushes dollar down the drain, ECB and BoE next

Posted on February 2, 2023 at 9:20 am GMT

Fed chief strikes neutral tone, markets take it as ‘green light’ to party ECB and BoE decisions coming up, both set for 50bps rate increases Earnings season goes into full force with Apple, Amazon, and Google Dollar crumbles, stocks surge after Fed As expected, the Federal Reserve raised interest rates by one quarter of a percent yesterday and flagged further tightening to come. During his press conference, Chairman Powell struck a relatively neutral tone, highlighting the recent progress in the [..]

UK will not avoid recession says IMF; what does this mean for the pound? – Special Report

Posted on February 1, 2023 at 11:44 am GMT

Britain’s economy may be the only one that contracts in 2023 according to the IMF’s latest quarterly assessment, dealing a blow to hopes that a recession can be avoided. The pound was the second worst performing currency after the yen last year amid an energy crisis, political chaos and a botched budget, which all added to the existing post-Brexit and post-pandemic challenges. But how accurate are the IMF’s forecasts when no other major economy is expected to shrink, and can [..]

S&P500 short-term correlations hold surprises – Special Report

Posted on February 1, 2023 at 7:13 am GMT

It has been a relatively quiet week, but it is highly probable that this calmness will be broken soon. The numerous central bank meetings, starting with the Fed gathering on Wednesday afternoon, and the busy data calendar promise an eventful period. Market correlations are used extensively by market participants to depict the current state of the market. Do long-term correlations stand or has something changed in the market recently? By using daily data, we calculated the latest 3-month daily correlation, [..]

Bank of England: One final 50bps rate hike – Forex News Preview

Posted on January 31, 2023 at 11:20 am GMT

The Bank of England will review its monetary policy on Thursday in what might turn out to be a live event as investors eagerly look for signs that rate differentials with the Fed will narrow this year. While a downshift to softer rate hikes is less likely to happen this time, pound traders may seek new tweaks in forward guidance before they drive the pound out of its short-term range. The policy announcement will be out at 12:00 GMT. A [..]

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