All Articles Tagged - GBPUSD

Technical Analysis – GBPUSD tumbles after stronger US CPI print

Posted on June 10, 2022 at 1:16 pm GMT

GBPUSD has been in a downtrend after it failed to jump beyond the 1.2600 region, generating a profound structure of lower highs and lower lows. Additionally, the price has sharply dropped beneath both the 200-period simple moving average (SMA) and the lower Bollinger band, endorsing a broader bearish short-term picture. The short-term oscillators also confirm that bearish forces are in total control. Specifically, the RSI has entered its 30-oversold area, while the MACD histogram is currently beneath both zero and [..]

Week Ahead – Fed gets ball rolling in busy central bank week

Posted on June 10, 2022 at 9:54 am GMT

The coming week is loaded with central bank meetings to shake things up in the FX arena. Fed officials are almost certain to raise rates by half a percentage point, so markets will be driven mostly by their future projections. The Bank of England could also lift rates but strike a cautious tone. Nothing is expected in Japan, while Switzerland might disappoint those looking for immediate action. Fed to keep options open The Federal Reserve has long telegraphed a 50 [..]

Daily Market Comment – Euro steady ahead of ECB decision, stocks drift lower

Posted on June 9, 2022 at 9:28 am GMT

Euro holds around $1.07 ahead of expected ECB stimulus pullout Elevated yields and oil prices weigh on equities, some relief from China trade jump Yen snaps losing streak, dollar gets caught in sideways range in CPI wait Cautious calm before ECB amid hawkish risks The European Central Bank meeting is undoubtedly the focal point for investors on Thursday in what could turn out to be the most important policy shift since Draghi’s ‘whatever it takes’ moment. After years of quantitative [..]

Daily Market Comment – Dollar edges up as yields spike, yen sinks, stocks come under pressure

Posted on June 7, 2022 at 9:07 am GMT

Bond selloff gathers steam ahead of large Treasury auction, pushing yields higher Surprise big rate hike by RBA adds to jitters about rising borrowing costs, stocks slip Dollar climbs as yen tumbles, pound plunges too as Johnson’s woes not over Fresh bond rout rattles markets Bond yields surged on Tuesday as investors fretted about how far central banks will go to contain inflationary pressures that are rampaging around the world. US Treasury yields edged lower for most of May as [..]

Technical Analysis – GBPUSD flirts with 20-day SMA, suggesting more losses

Posted on June 7, 2022 at 7:12 am GMT

GBPUSD is currently positioned within the 20- and 40-day simple moving averages (SMAs), which are pointing upwards. The current bias appears negative, as the MACD is holding below the zero level, while the RSI is sloping down in the negative territory. Should weakness extend below the 1.2455 mark, support to downside movements could initially be detected within the 1.2070-1.2150 area, which encapsulates the two-year low. Clearing that zone, the next stop could be around 1.1420, a tested level since March 2020. Alternatively, the pair needs [..]

Technical Analysis – GBPUSD confused ahead of Boris Johnson’s confidence vote

Posted on June 6, 2022 at 2:42 pm GMT

GBPUSD keeps zig zagging within the 1.2483 – 1.2585 zone for the fourth consecutive trading day, unable to resume its rebound off the two-year low of 1.2154 ahead of Boris Johnson’s confidence vote. The RSI and the MACD provide little direction about the next move in the price, as the former is fluctuating marginally below its 50 neutral mark, while the latter remains muted beneath its zero line. As long as the indicators remain in the bearish zone though, downside [..]

Daily Market Comment – Strong NFP report dampens Fed pause hopes

Posted on June 6, 2022 at 8:50 am GMT

US economy still churning out jobs but Fed may have to keep hiking by 50 bps Stocks rebound after NFP-led dip as yields advance only marginally Euro slightly firmer ahead of ECB, pound shrugs off Johnson confidence vote Strong NFP: a case of glass half full? America’s roaring labour market added a stronger-than-expected 390k jobs in May, while the unemployment rate held steady at 3.6% even as the labour force participation rate improved slightly. The upbeat numbers dashed hopes that [..]

Technical Analysis – GBPUSD battles with 50-SMA as advance pauses

Posted on June 3, 2022 at 8:54 am GMT

GBPUSD has been in a sustained uptrend since early May when it managed to halt its decline at the 1.2154 region. Although in the last few four-hour sessions the pair has been recovering from its recent sharp pullback, the 50-period simple moving average (SMA) appears to be capping its upside. The momentum indicators reflect a cautiously positive tone for the pair. The MACD histogram has jumped above its red signal line but remains in the negative territory, while the RSI remains flat [..]

Technical Analysis – GBPUSD struggles to recover after advances get curbed

Posted on June 2, 2022 at 3:36 pm GMT

GBPUSD is in the vicinity of the 200-period simple moving average (SMA) at 1.2548, trading between the 50- and 100-period SMAs after two-weeks of gains failed to steer beyond the 1.2643-1.2700 resistance boundary that stretches back to the end of July 2020. The moving averages have started to flatline and are no longer painting a convincing trend in the pair. Currently, the short-term oscillators are transmitting mixed signals in directional momentum. The MACD is slightly south of the zero threshold [..]

US Open Note – Dollar continues the sell-off after ADP and ahead of NFP; oil erases losses

Posted on June 2, 2022 at 12:43 pm GMT

ADP dissapoints; NFP comes out tomorrow After the disappointing release of the ADP report which announced 128K workers versus 300K that was expected, the dollar is still trading lower. After two days in a row of gains, the dollar index retraced to a low of 102.12. As dollar/yen traded over 130 for the first time since the middle of May, the trend of the yen weakening has re-established itself. Sterling is holding above $1.25, within the short-term moving averages. Yesterday, Bullard stated that the path that the Fed [..]

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