All Articles Tagged - GBPUSD

Technical Analysis – GBPUSD pulls lower after nearing 2020 barrier

Posted on May 31, 2022 at 11:49 am GMT

GBPUSD is marking a negative day after its four-day gradual bull run met resistance near the 1.2653 zone, which is marginally below the low from September 2020. The short-term bias is viewed as neutral as the RSI is diminishing towards its 50 neutral mark after barely peeking above it, while the MACD has yet to enter the positive territory despite increasing its distance well above its red signal line. The Stochastics are losing steam, but they haven’t exited the overbought territory yet. [..]

US Open Note – Wall Street pushes back, will positive sentiment last?

Posted on May 27, 2022 at 1:45 pm GMT

Dollar soft as markets digest pause in Fed tightening, PCE Price index eyed The assumption that the US central bank would remain hawkish through 2022 in relation to rate hikes to starve hot inflation has now matured into a more vigilant approach, with the Federal reserve still keeping tabs on recession risks and stagflation fears. The decline in US Treasury yields recently and the cautious rhetoric from the Fed that they may tone down their aggressive hiking pace, plus this [..]

Daily Market Comment – Dollar slips further ahead of PCE inflation as equity rebound gathers steam

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

Wall Street poised to snap losing streak as Fed bets ease, China tech earnings help Dollar drops to fresh one-month low; can PCE inflation revive it? Sunak’s support package shores up pound, euro heads for strong weekly gains Stock markets end week on stronger footing Despite a few wobbles, the recovery that got underway on Wall Street at the start of the week has gone from strength to strength and the major US indices are on track to break their [..]

Technical Analysis – GBPUSD pauses advance as bullish momentum fades

Posted on May 27, 2022 at 8:33 am GMT

GBPUSD has been trending upwards since it managed to halt its decline at the two-year low of 1.2154. Although the price ascent has faltered after touching the upper Bollinger band, the pair is retaining its bullish short-term picture. The momentum indicators suggest a loss of steam for the pair. The stochastic oscillator appears ready to post a bearish cross, while the RSI is pointing down above its 50-neutral threshold. Should negative momentum intensify, 1.2550 could act as the first line of [..]

US Open Note – Risk appetite improves with FOMC optimism

Posted on May 26, 2022 at 1:34 pm GMT

Dollar hovers as yields stabilize with US GDP figures Yesterday’s minutes from the Federal Reserve’s May meeting reiterated two 50 basis point raises in June and July but also highlighted the possibility that the Fed may then stall hikes if the effects on the economy of these increases have managed to calm inflationary pressures. The question is will inflation have eased enough by then for the Fed to lower its rate trajectory? The minutes hinted that if post-hike inflation remains [..]

Technical Analysis – GBPUSD extends bullish bias in near term; next battle at 1.2640

Posted on May 26, 2022 at 11:55 am GMT

GBPUSD has finally reversed to the upside after the bounce off the two-year low of 1.2150 to reach the 1.2640 strong resistance level. The downward pattern started in mid-January; however, it may not change unless the market manages to crawl substantially above the 200-day simple moving average (SMA) at 1.3330. The momentum indicators, though, are currently supporting that positive momentum is likely to strengthen in the short-term. Specifically, the RSI is picking up speed above 50 and the MACD continues to distance [..]

Daily Market Comment – Some cheer for markets after no hawkish surprises in Fed minutes

Posted on May 26, 2022 at 9:25 am GMT

Wall Street rallies after Fed minutes but elated mood fades quickly Fears about stagflation and China slowdown continue to haunt investors Dollar holds steady, pound looks forward to Sunak’s new cost of living plan Fed minutes ease overtightening angst Markets were choppy but relatively steady on Thursday as Wall Street futures kept climbing in and out of negative territory and the US dollar was having another mixed session. The mild risk-on tone is riding on the back of yesterday’s rebound [..]

Daily Market Comment – Dollar bounces off 1-month low, stocks recover too as Fed minutes eyed

Posted on May 25, 2022 at 8:55 am GMT

Soft US data drags yields and dollar lower as Fed’s Bostic calls for rate hike pause Nasdaq edges up after slump in tech stocks; Fed minutes awaited for more direction Kiwi jumps after RBNZ’s surprise hawkish tilt, euro dips on mixed ECB messages Fed rate hike path trimmed back after weak US data Signs that consumer demand in the United States is being pressured from the increase in the cost of living and that supply shortages are getting worse were [..]

US Open Note – Market sentiment dulls with growth worries

Posted on May 24, 2022 at 2:02 pm GMT

US yields ebb and heavy dollar follows A risk-off tone has gripped markets as rekindled growth concerns are being highlighted due to China supply constraints from lockdowns, the domino effects from the Russian invasion on Ukraine and pressures on central banks who are expected to do more to bring inflation lower without pushing their economies into recession. The already aggressive Federal Reserve is finding its job to curb inflation more challenging as the degree or constant pace of tightening is [..]

Technical Analysis – GBPUSD’s broader bearish bias under the microscope

Posted on May 24, 2022 at 9:01 am GMT

GBPUSD is struggling to climb towards the upper Bollinger band which is residing within the 1.2633-1.2690 resistance zone following a price bounce in the vicinity of the 1.2160 support, logged back in May 2020. The diving simple moving averages (SMAs) are still backing the downward trend despite significant developments in the pair, after bouncing around two-year low levels. Lately, the short-term oscillators have been indicating a constant dwindling in negative momentum, but sellers are starting to push back. The MACD [..]

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