GBP/USD battles with descending trendline [Video]
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 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 softening above both zero and its red signal line. Moreover, the price action remains beyond the Ichimoku cloud, painting a broader bullish short-term picture. Read more…
GBP/USD Forecast: Pound needs to clear 1.1550 to attract buyers
GBP/USD has reversed its direction and climbed above 1.1500 on Tuesday after having closed the first day of the week deep in negative territory. The pair’s near-term technical outlook shows that sellers are struggling to dominate the action and additional recovery gains could be witnessed if risk flows continue to dominate the markets in the second half of the day.
The positive shift witnessed in market mood amid the better-than-expected Chinese PMI data and heightened optimism about China possibly easing coronavirus restrictions caused the greenback to lose interest early Tuesday. Additionally, the Reserve Bank of Australia’s (RBA) decision to raise its policy rate by only 25 basis points (bps) seems to have triggered a risk rally. Reflecting the broad-based USD weakness, the US Dollar Index was last seen losing 0.5% on the day. Meanwhile, US stock index futures are up between 0.6% and 1%, suggesting that Wall Street’s main indexes could open decisively higher and force the greenback to stay on the back foot. Read more…
GBP/USD outlook: Cable regains traction on improved risk mode, all eyes are on Fed
Cable regained traction on Tuesday on renewed risk appetite and returned back above 1.15 handle, signaling that a shallow pullback from new multi-week high (1.1645) might be over.
Quick changes in a view of Fed’s near-future actions, continues to move markets in opposite directions, as Monday’s optimism that the US central bank will stick to its aggressive mode, started to fade on Tuesday.
Markets are quite sure that the Fed will raise its interest rate by 75 basis points on Wednesday, but again see risk of softer approach in meetings in coming months, with prevailing expectations for 50 basis points hike in December that would be negative signal for dollar. Read more…