Pound Sterling Price News and Forecast: GBP/USD - Five reasons to put the pound in ICU
|GBP/USD bounces at HFT buy zones and rallies to light HFT sell zone!
We are analyzing Fx High-Frequency Trading algorithms and note that the GBPUSD currency pair has been very active during this Tuesday morning in Europe.
Earlier in the overnight session, the pair dipped down and tested the light HFT buying pressure zone - noted at 1.2184 and below. The bearish attempt was quickly rejected here, and GBPUSD bounced strongly.
The price is now pushing through the light HFT selling pressure zone to the upside, which is noted at 1.2302 and above. While this means that more sellers are likely to enter the market now, the high volatility in today's session suggests its possible that GBPUSD may record larger trading ranges. Read more...
GBP/USD: Five reasons to put the pound in ICU
GBP/USD has been moving higher amid dollar weakness, amid concerns for PM Johnson. Various aspects of the leadership crisis may send sterling down again, FXStreet’s analyst Yohay Elam briefs.
Key quotes
“The most recent reports have suggested that Johnson is receiving oxygen but is not on a ventilator. Hopefully, Tuesday's information is more reliable than Monday's. Nevertheless, being in intensive care is worrying enough.”
“Any other leader would have less clout and would need to win over the trust of other ministers and civil servants while the country and the world are battling the coronavirus crisis.”
“Contrary to several countries on the continent, the UK's peak may still be ahead.” Read more...
GBP/USD extends strong intraday recovery, refreshes session tops around mid-1.2300s
The selling bias around the greenback picked up pace in the last hour and lifted the GBP/USD pair to fresh session tops, around mid-1.2300s.
Following an early fall to 1-1/2 week lows, the pair witnessed a dramatic turnaround and rallied nearly 200 pips from an intraday low level of 1.2164 amid some heavy US dollar long-unwinding trade.
The latest optimism over a slowdown in the number of new coronavirus cases in the United States, Italy and Spain led to some follow-through rally in the equity markets for the second straight session.
The risk-on mood eventually weighed heavily on the greenback's perceived safe-haven status and was seen as one of the key factors driving the pair higher through the early European session on Tuesday.
As investors took cues for signs of a peak in the coronavirus pandemic, the GBP bulls seemed rather unaffected by the fact that the UK Prime Minister Boris Johnson was moved to intensive care overnight.
Meanwhile, the UK Cabinet minister Michael Gove was out with some comments in the last hour and said that any decision on lifting lockdown, containment measures may be a bit too soon for the UK to consider. Read more...
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