All Articles Tagged - GBPUSD

Technical Analysis – GBPUSD battles with descending trendline

Posted on November 1, 2022 at 8:34 am GMT

GBPUSD has been in a prolonged downtrend since the beginning of the year, plummeting to an all-time low of 1.0324 in mid-September. Although the pair has been in a recovery mode since then and lately crossed above its descending trendline, its latest advance failed to strengthen further, with the pair retracing back to its bearish pattern. The short-term oscillators are currently indicating a cautiously bullish near-term tone. Specifically, the RSI is hovering slightly above its 50-neutral mark, while the MACD histogram is [..]

Daily Market Comment – Caution sets in after risk rally as Fed in focus

Posted on October 31, 2022 at 10:09 am GMT

Stocks wobble at start of FOMC week following surprise tech rebound Dollar edges up as rate hike expectations strengthen again Pound and aussie slip ahead of BoE and RBA decisions, commodities struggle Equities in another show of resiliency US futures slipped early on Monday and European shares were mixed as the Apple-led risk rally faded somewhat, with investors turning more cautious ahead of the Fed’s highly anticipated policy decision on Wednesday. Wall Street unexpectedly surged on Friday despite US data [..]

Technical Analysis – GBPUSD breaks downtrend line but fails to extend bullish structure

Posted on October 27, 2022 at 2:02 pm GMT

GBPUSD advanced above the long-term descending trend line on Wednesday but today the market reaction is negative. The 20- and 50-day simple moving averages (SMAs) are suggesting a bullish crossover while the MACD is extending its bullish structure above its trigger and zero lines. However, the RSI is pointing slightly down in the positive territory. If the price turns back down, the 1.1490 barrier could provide initial support before tumbling to the 50-day SMA at 1.1380. The 20-day SMA is the next significant support at [..]

Week Ahead – Fed and BoE to raise rates ahead of US payrolls

Posted on October 27, 2022 at 1:53 pm GMT

Another extraordinary week is coming up. The Fed is almost certain to raise rates, putting the spotlight on Chairman Powell, who needs to open the door for a smaller rate hike in December without giving the impression of a pivot. Meanwhile, central bank decisions in the UK and Australia will be crucial for those currencies, before the week concludes with the latest edition of nonfarm payrolls. Fed pivot? Not quite A three-quarter percentage point rate increase from the Federal Reserve [..]

Daily Market Comment – Dollar slides and equities extend gains on bets for less hawkish Fed

Posted on October 26, 2022 at 8:30 am GMT

Dollar slides as US data disappoints Pound gains on Sunak’s pledges, Aussie up on CPIs Wall Street adds to gains on bets of slower Fed hike pace Dollar loses more ground on less aggressive Fed hopes The US dollar underperformed against all the other major currencies on Tuesday as weak data added to hopes that the Federal Reserve may need to slow its aggressive pace of interest rate hikes. US single-family house prices fell sharply for the second consecutive month [..]

Technical Analysis – GBPUSD struggles withing short-term SMAs; neutral bias

Posted on October 25, 2022 at 6:36 am GMT

GBPUSD is hovering within the 20- and 50-day simple moving averages (SMAs) after the bearish movement from the 1.1400 mark on Monday. In the short-term, the price is failing to endorse a bullish correction and is shifting the bias to neutral. Technically, the MACD oscillator is still strengthening its positive momentum, while the RSI is moving sideways near the neutral threshold of 50. Should prices reverse lower, immediate support could come from the 20-day SMA at 1.1205. Below that, the [..]

Daily Market Comment – Yen intervention fails, politics boosts sterling

Posted on October 24, 2022 at 9:17 am GMT

Japanese authorities suspected of stepping into FX market again Sterling climbs as Sunak takes political lead, Fed lifts Wall Street Euro unfazed after European PMIs, China shows signs of stress FX intervention Japanese authorities most likely conducted another operation in the currency market, deploying their vast firepower of FX reserves to shore up the sinking yen. Like a bolt out of the blue, the yen stormed higher last week and then again on Monday, with the moves being so sharp [..]

Technical Analysis – GBPUSD eases to 1.1100; tests 20-day SMA

Posted on October 21, 2022 at 10:27 am GMT

GBPUSD drifted lower to test the 1.1100 round number and the 20-day simple moving average (SMA) early on Friday. The RSI indicator is losing momentum below its 50 neutral mark, while the MACD is strengthening its bearish structure in the negative region as well. Should weakness extend below the 1.1100 mark, support to downside movements could be initially detected near the 1.0910 barrier. Clearing that zone, the price could next stop around 1.0535 before reaching the record low of 1.0325. Alternatively, the pair will need a break above the 50-day SMA at 1.1415 [..]

Daily Market Comment – Mood sours as yields creep up again, UK PM resigns

Posted on October 21, 2022 at 9:27 am GMT

Mixed earnings can’t save Wall Street as hawkish Fed talk pushes up yields UK yields are an exception, retreating after Truss quits as PM; pound briefly spikes Dollar crosses 150 yen threshold as BoJ too busy snapping up bonds Markets contemplate 5% Fed funds rate Wall Street’s latest attempt at a rebound has run into another wall as a mixed set of corporate earnings have left stocks vulnerable to renewed bets of aggressive tightening by the Federal Reserve. Philadelphia Fed [..]

Daily Market Comment – Yen plunge continues; UK inflation returns to double digits

Posted on October 19, 2022 at 8:10 am GMT

Yen extends freefall as traders defy intervention warnings Pound slides after UK inflation returns to double digits Loonie traders await inflation numbers as well Equities extend recovery on better earnings results Intervention warnings intensify as dollar nears 150 yen The US dollar traded slightly lower against most of the other major currencies on Tuesday but rebounded somewhat today. The only currencies against which the greenback gained some ground yesterday was the Japanese yen and the British pound, with the former [..]

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