GBP/USD

Cable remains in red for the second day, pressured by weaker risk sentiment and downbeat report from the BoE, which showed raised expectations for inflation in one year time to 9.5% from 8.4% estimation in August and expectations for 4.8% inflation in three years.

Inflation in UK eased to 9.9% in September from 10.1% in August, but still about five times above the central bank’s 2% target.

BoE remains on track for further rate hikes to in fight to bring red-hot inflation under control, though high borrowing cost would further hurt already weakened economic growth.

Overall negative near-term picture could be partially offset by better than expected UK PMI data which showed unexpected increase of activity in construction sector, sending the index to three-month high.

Daily studies show near-term structure weakening, following a pullback after repeated reject at round-figure 1.15 resistance, as negative momentum is rising and stochastic emerging from overbought territory. Fresh bears tested initial support at 1.1225 (Fibo 23.6% of 1.0348/1.1495 recovery leg), but need break here to further weaken near-term structure and open way for attack at key supports at 1.1082/1.1057 (10DMA/Fibo 38.2%) and psychological 1.10 level, to generate stronger reversal signal on break. Falling 30DMA offers immediate resistance at 1.1373, guarding the upper pivot at 1.1500, violation of which would bring bulls back to play.

Res: 1.1373; 1.1410; 1.1460; 1.1500.
Sup: 1.1225; 1.1082; 1.1057; 1.1000.

GBPUSD

Interested in GBP/USD technicals? Check out the key levels

    1. R3 1.1741
    2. R2 1.1618
    3. R1 1.1472
  1. PP 1.1349
    1. S1 1.1203
    2. S2 1.1081
    3. S3 1.0934

 

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.

EUR/USD News
GBP/USD hits fresh tops near 1.3300 on weaker Dollar

GBP/USD hits fresh tops near 1.3300 on weaker Dollar

The Greenback is now accelerating its decline following the Fed’s decision to reduce its interest rates, sending GBP/USD to fresh tops in the 1.3290 zone.

GBP/USD News
Gold surrenders gains and drops to weekly lows near $2,550

Gold surrenders gains and drops to weekly lows near $2,550

Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.

Gold News
Federal Reserve set for first interest-rate reduction in four years amid growing bets of jumbo cut

Federal Reserve set for first interest-rate reduction in four years amid growing bets of jumbo cut

The Federal Reserve is widely expected to lower the policy rate after the September meeting. The revised Summary of Economic Projections and Fed Chairman Powell’s remarks could provide important clues about the rate outlook.

Read more
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting

UK CPI set to grow at stable 2.2% in August ahead of BoE meeting

The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.

Read more
Moneta Markets review 2024: All you need to know

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.

Read More

Majors

Cryptocurrencies

Signatures