Pound Sterling Price News and Forecast: GBP/USD tests medium-term channel [Video]
|GBP/USD: Dollar recovery turned Cable around after a five day bull run [Video]
A dollar recovery has once more turned Cable around after a five day bull run. It is incredible to see that even amidst the volatility that has so enormously ramped up recently, there is still a tendency for Cable to trend for a handful of days in one direction and then retrace once more. The strong negative candlestick which has closed the market back below $1.3000 once more, renewed the negative bias and re-opens the pressure on the 50% Fibonacci retracement (of $1.2193/$1.3515) at $1.2855. On so many occasions has Cable used these Fib levels, that closing decisively below the 38.2% Fib (at $1.3010) is a key move. Read more...
GBP/USD Analysis: Tests medium-term channel
Yesterday, the GBP/USD exchange rate declined to the lower boundary of the medium-term ascending channel at 1.2870. During Wednesday morning, the rate was testing the lower channel line.
From a theoretical point of view, it is likely that a reversal north could occur in the nearest future. In this case the currency pair could re-test the monthly R1 at 1.3096. Read more...
GBP/USD holds steady above 1.2900 mark, moves little post-UK budget announcement
The GBP/USD pair managed to hold its neck above the 1.2900 round-figure mark, albeit lacked any strong follow-through and remained below session tops post-UK budget announcement.
As investors looked past the Bank of England's surprise move to cut interest rates by 50 bps points, the pair consolidated the intraday volatile swings. Bulls seemed rather unimpressed by the UK budget proposal to increase the level of spending on public infrastructure.
Adding to this, the UK Chancellor of the Exchequer Rishi Sunak unveiled massive coronavirus fiscal measures, which included providing temporary loans to businesses and 80% guarantee of bank loans of up to 1.2m to small businesses.
The budget proposals were exactly the kind of anticipated targeted stuff that would help businesses to survive the coronavirus outbreak. The British pound did get a minor boost but struggled to gain any meaningful traction and held steady near the 1.2920-30 region. Read more...
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