All Articles Tagged - GBPUSD

Technical Analysis – GBPUSD rebounds off 27-month low but SMAs act as strong resistance

Posted on June 21, 2022 at 6:36 am GMT

GBPUSD has reversed back up again after finding support at the 27-month low of 1.2070, achieved last week, but the current momentum is still weak. The technical indicators are pointing to a neutral to negative bias in the short term with the RSI just below 50 and the MACD oscillator remaining in bearish territory. Moreover, the stochastic is attempting a bearish crossover within the %K and %D lines, suggesting a downside movement is nearing. Further losses should see the latest [..]

Wounded sterling awaits heavy dose of UK data – Forex News Preview

Posted on June 20, 2022 at 3:09 pm GMT

The economic calendar is packed with data releases from the United Kingdom this week, starting with the latest inflation report at 06:00 GMT on Wednesday. Sterling has taken a heavy beating this year, underperforming even the war-ravaged euro despite a flurry of rate increases from the Bank of England. Until there is some good news from Ukraine that boosts stock markets and hammers energy prices, it is difficult to call for a trend reversal. Ransacked The British pound has been [..]

Week Ahead – Flash PMI and inflation data in focus after mammoth Fed rate hike

Posted on June 17, 2022 at 11:58 am GMT

Recession worries are mounting as central banks around the world step up their fight against soaring inflation. The flash PMI readings for June will be watched for any clues that tighter monetary policy is choking economic growth. In the meantime, inflation numbers in Canada, Japan and the United Kingdom could add yet more pressure on policymakers to do more. However, after hiking rates by the most in 28 years, Fed chief Jerome Powell could steal the limelight again in the [..]

Daily Market Comment – Yen rolls over as BoJ refuses to join party, stocks pummeled

Posted on June 17, 2022 at 9:00 am GMT

Bank of Japan delivers no policy changes, hammers yen back down Stock market selloff intensifies, dollar hit by lower yields, gold shines Mixed signals from Bank of England send sterling on a rollercoaster ride BoJ holds the line The Bank of Japan stuck to its guns today, keeping its policy settings unchanged and doubling down on its commitment to maintain yield curve control – the strategy responsible for the carnage in the Japanese yen. Speculation was running wild that the [..]

Daily Market Comment – Fed slams on the brakes, BoE decision next

Posted on June 16, 2022 at 8:38 am GMT

Fed raises rates by 75 bps, dollar cools off, stocks bounce Bank of England could disappoint market expectations today SNB surprises with 50 bps rate hike, BoJ set to keep powder dry Fed goes big The Federal Reserve raised interest rates by 75 basis points, in line with market pricing. Chairman Powell attributed the powerful move to the latest sizzling inflation reading and concerns that inflation expectations were starting to drift beyond the 2% target, which forced the Committee to [..]

Technical Analysis – GBPUSD sell-off takes a break; 1.2100 in target

Posted on June 15, 2022 at 2:06 pm GMT

GBPUSD set a strong foothold marginally below the 1.2000 round-level in the four-hour chart, with the price almost fully correcting Tuesday’s downfall to trade higher at 1.2120 in the aftermath. The bulls are currently aiming to close above the 23.6% Fibonacci of the 1.2665 – 1.1932 downleg at 1.2105, and the technical signals are on their side. Particularly, the RSI has shifted sharply to the upside to exit the oversold area. Similarly, the Stochastics have resumed their upward trajectory, while the MACD, although well dipped in [..]

Daily Market Comment – Fed decision kicks off central bank bonanza

Posted on June 15, 2022 at 8:23 am GMT

Markets expect Fed to raise interest rates by 75 bps today ECB calls emergency meeting today too – time to close spreads? Yen and sterling retreat ahead of their own central bank meetings Fed playbook The next couple of days are loaded with central bank meetings, kicking off with the Fed decision today. A rate increase is almost certain as the Fed attempts to dismantle inflationary forces – the question is exactly how big this move will be and where [..]

Technical Analysis – GBPUSD bearish outlook worsens; signals discouraging

Posted on June 14, 2022 at 6:35 am GMT

GBPUSD switched to a recovery mode on Monday following last week’s brutal sell-off, which worsened the broad outlook and squeezed the price to a new two-year low of 1.2100. The previous low of 1.2154 is currently limiting upside pressures as the momentum indicators provide little hope for a meaningful rally. Explaining that, the slight upturn in the RSI is not convincing yet since the indicator remains well dipped in the bearish area, while the negative slope in the Stochastics suggests that the bears [..]

Bank of England: steady as she goes? – Forex News Preview

Posted on June 13, 2022 at 2:24 pm GMT

The Bank of England is set to hike rates again on Thursday when it announces its latest policy decision at 11:00 GMT. But with many other central banks going into higher gear, will the BoE stick with 25-basis-point increments or will it join the 50-bps bandwagon? Given all the warnings of recession for the UK economy lately, a dovish tilt seems more likely than a hawkish one. Hence, there’s not much prospect of the selling pressure on sterling easing anytime [..]

Daily Market Comment – Dollar and yields surge after US inflation jump, stocks sink

Posted on June 13, 2022 at 9:15 am GMT

US CPI unexpectedly accelerates in May, fuelling fears of more big Fed rate hikes Wall Street tanks, dollar firms as yields keep rising ahead of central bank meetings Pound tumbles as UK economy sounds recession alarm bells, yen breaches 135 level No inflation peak in sight Inflation in the United States jumped to a fresh 40-year high of 8.6% y/y in May, confounding expectations that it would hold steady at 8.3%. The month-on-month rate increased by a shock 1% and [..]

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