The GBP/USD pair is trading in the red at 1.2652 at the time of writing and it seems very heavy as the DXY could come back higher. After the last drop, a rebound was natural. Later, the US Unemployment Claims, Core PCE Price Index, Chicago PMI, Pending Home Sales, Personal Income, and Personal Spending should really shake the price. Positive US data should push the currency pair towards new lows.

 

Technically, the rate came back to retest the broken uptrend line, developing a minor flag pattern, which signaled a new sell-off. The false breakouts through 1.26736 followed by a valid breakdown below 1.2650 activates more declines.

Chart 


Join Learn 2 Trade VIP Group now!

Information on the Learn2.trade website and inside our Telegram Group is intended for educational purposes and is not to be construed as investment advice. Trading the financial markets carries a high level of risk and may not be suitable for all investors. Before trading, you should carefully consider your investment objectives, experience, and risk appetite. Only trade with money you are prepared to lose. Like any investment, there is a possibility that you could sustain losses of some or all of your investment whilst trading. You should seek independent advice before trading if you have any doubts. Past performance in the markets is not a reliable indicator of future performance. Learn2.trade takes no responsibility for loss incurred as a result of the content provided inside our Telegram Groups. By signing up as a member you acknowledge that we are not providing financial advice and that you are making the decision on the trades you place in the markets. We have no knowledge of the level of money you are trading with or the level of risk you are taking with each trade.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD jumps above 0.6500 after hot Australian CPI data

AUD/USD jumps above 0.6500 after hot Australian CPI data

AUD/USD extended gains and recaptured 0.6500 in Asian trading, following the release of hotter-than-expected Australian inflation data. The Australian CPI rose 1% in QoQ in Q1 against 0.8% forecast, providing extra legs to the Australian Dollar upside. 

AUD/USD News

USD/JPY hangs near 34-year high at 154.88 as intervention risks loom

USD/JPY hangs near 34-year high at 154.88 as intervention risks loom

USD/JPY is sitting at a multi-decade high of 154.88 reached on Tuesday. Traders refrain from placing fresh bets on the pair as Japan's FX intervention risks loom. Broad US Dollar weakness also caps the upside in the major. US Durable Goods data are next on tap. 

USD/JPY News

Gold price cautious despite weaker US Dollar and falling US yields

Gold price cautious despite weaker US Dollar and falling US yields

Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.

Gold News

Crypto community reacts as BRICS considers launching stablecoin for international trade settlement

Crypto community reacts as BRICS considers launching stablecoin for international trade settlement

BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.

Read more

US versus the Eurozone: Inflation divergence causes monetary desynchronization

US versus the Eurozone: Inflation divergence causes monetary desynchronization

Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.

Read more

Majors

Cryptocurrencies

Signatures