- GBP/USD has regained its traction on improving market mood early Tuesday.
- US Dollar Index turned south after rising toward 99.00.
- US stock index futures are up, reflecting an improving market mood.
GBP/USD has turned north following a decline toward 1.3100 earlier in the day. The positive shift witnessed in market mood seems to be helping the British pound hold its ground against the greenback in the early European session. The pair is closing in on key 1.3200 resistance and additional gains could be witnessed if sellers fail to defend that level.
Ukrainian President Volodymyr Zelenskyy said on Tuesday that they were ready to discuss commitment not to join NATO and added that they could also discuss the status of Crimea and Donbass after the ceasefire. Although it's too early to say whether or not these remarks could be taken as convincing signs toward a diplomatic solution, risk-sensitive assets are gathering interest.
The UK's FTSE 100 Index is up 0.6% and US stock index futures are rising between 0.35% and 0.4%. Meanwhile, the US Dollar Index, which came within a touching distance of 99.00 on the back of hawkish Fed commentary, is posting small daily gains near 98.60.
The economic docket will not feature any high-impact data releases on Tuesday and GBP/USD needs risk flows to continue to dominate the financial markets in order to extend the recovery.
GBP/USD Technical Analysis
On the four-hour chart, GBP/USD is testing the 100-period SMA, which forms interim resistance at 1.3180 ahead of the critical 1.3200 (psychological level, Fibonacci 50% retracement of the latest downtrend) hurdle.
Meanwhile, the Relative Strength Index (RSI) indicator is holding above 50 on the same chart, suggesting that buyers are looking to take control of the pair's action. In case 1.3200 level turns into support, the next bullish target could be seen at 1.3250 (Fibonacci 61.8% retracement).
On the downside, 1.3150 (Fibonacci 38.2% retracement) aligns as first support before 1.3100 (50-period SMA, Fibonacci 23.6% retracement, psychological level).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD: Extra gains in the pipeline above 0.6520
AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.
EUR/USD jitters post-Fed with NFP Friday over the horizon
EUR/USD cycled familiar territory on Wednesday after the US Federal Reserve held rates as many investors had expected. However, market participants were hoping for further signs of impending rate cuts from the US central bank.
Gold prices skyrocketed as Powell’s words boosted the yellow metal
Gold prices rallied sharply above the $2,300 milestone on Wednesday after the Federal Reserve kept rates unchanged while announcing that it would diminish the pace of the balance sheet reduction.
Ethereum plunges outside key range briefly as US Dollar Index gains strength
Institutional whales appear to be dumping Ethereum after recent dip. Fed’s decision to leave rates unchanged appears to have helped ETH's price recover slightly. SEC Chair Gensler has misled Congress, considering recent revelations from Consensys suit, says Congressman McHenry.
The FOMC whipsaw and more Yen intervention in focus
Market participants clung to every word uttered by Chair Powell as risk assets whipped around in a frenetic fashion during the afternoon US trading session.