The first bunch of fundamental data from the UK is out, and is no good for Pound: before the data was even released, speculation of a weaker CPI put GBP/USD under selling pressure, down to 1.6170 from previous 1.6220. Inflation finally came out, down to 1.5% as expected, albeit PPI readings were generally weak, pushing the pair to a fresh low of 1.6160, now consolidating nearby. Such weak number diminishes chances of a sooner rate hike in the UK and investors run to price it in.
Technically, the pair breached the 23.6% retracement of its latest bearish run at 1.6190, now immediate resistance as latest recoveries found sellers around it according to the 1 hour chart. In the 4 hours one, indicators had gained bearish momentum, accelerating south below their midlines, supporting some further slides: a downward acceleration below 1.6160 should see the pair extending towards the 1.6110/20 price zone, while if this last gives up, this month low around 1.6050 comes next.
A recovery above 1.6190 on the other hand should take out some of the pressure and see the pair back to its comfort zone between 1.6220 and 1.6250.
View Live Chart for GBP/USD
Technically, the pair breached the 23.6% retracement of its latest bearish run at 1.6190, now immediate resistance as latest recoveries found sellers around it according to the 1 hour chart. In the 4 hours one, indicators had gained bearish momentum, accelerating south below their midlines, supporting some further slides: a downward acceleration below 1.6160 should see the pair extending towards the 1.6110/20 price zone, while if this last gives up, this month low around 1.6050 comes next.
A recovery above 1.6190 on the other hand should take out some of the pressure and see the pair back to its comfort zone between 1.6220 and 1.6250.
View Live Chart for GBP/USD
Recommended Content
Editors’ Picks
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.