GBP/USD Price Analysis: Acceptance above 100-DMA/1.3600 to set the stage for further gains
The GBP/USD pair showed some resilience below the key 1.3500 psychological mark and has now recovered a major part of its intraday losses. The pair was last seen trading just a few pips below the daily high, around the 1.3540-30 region heading into the North American session.
From a technical perspective, the emergence of dip-buying near support marked by the 50% Fibonacci retracement level of the 1.3834-1.3161 downfall favours bullish traders. That said, the GBP/USD pair’s inability to find acceptance above the 100-day SMA and the overnight rejection near the 1.3600 mark warrants some caution. Read more…
GBP/USD Forecast: Bearish pressure could increase below 1.3480
GBP/USD has reversed its direction after rising to its highest level in nearly two months at 1.3600 late Wednesday as the dollar’s market valuation continues to impact the pair’s action. Although the pound seems to have steadied around 1.3500 in the early European session, additional losses could be witnessed in case it drops below 1.3480.
The minutes of the FOMC’s December meeting minutes revealed that policymakers saw it appropriate for the Fed to start the balance sheet normalization process soon after the first rate hike. The publication showed that participants see the current economic conditions warranting a faster pace of balance sheet runoff compared to the previous normalization episode. Read more…
GBP/USD retreats further from multi-week high, slides back closer to 1.3500 mark
The GBP/USD pair extended the previous day’s retracement slide from the vicinity of the 1.3600 mark, or a near two-month high and edged lower through the first half of the trading on Thursday. The pair maintained its offered tone heading into the European session and was last seen flirting with the daily low, around the 1.3520-15 region.
The December 14-15 FOMC policy meeting minutes pointed to a faster-than-expected rise in interest rates. Moreover, almost all participants agreed that it would likely be appropriate to initiate balance sheet runoff at some point after the first increase. A big shift in policymakers’ tone continued underpinning the US dollar, which, in turn, was seen as a key factor that prompted some follow-through selling around the GBP/USD pair. Read more…
This article was originally published by Fxstreet.com.Read the original article here.
