GBP/USD remains under selling pressure near the 1.2200 mark ahead of US CB Consumer Confidence


  • GBP/USD loses momentum around 1.2200 amid a rally of the USD.
  • The hawkish comments from the Federal Reserve (Fed) lift the US Dollar against GBP.
  • UK Gross Domestic Product (GDP) Q2, US Core Personal Consumption Expenditure (PCE) Price Index will be the highlight this week.

The GBP/USD pair remains under selling pressure and trades in negative territory for the fourth consecutive week during the early European session on Tuesday. The major pair currently trades near 1.2203, losing 0.07% on the day.

The Bank of England (BoE) decided to maintain the benchmark rate unchanged at a 15-year high level of 5.25%, halting a run of 14 consecutive rate hikes since December 2021. This, in turn, might weigh on the British Pound (GBP) against the US Dollar. The BoE official stated that further meetings are possible, indicating that the BoE could raise or halt interest rates if necessary.

On the other hand, the hawkish stance from the Federal Reserve (Fed) lifts the US Dollar and acts as a headwind for the GBP/USD pair. Early Tuesday, Minneapolis Federal Reserve Bank President, Neel Kashkari stated that he is one of the Fed policymakers who sees one more rate hike this year. He added that US rates probably have to go a little bit higher and be held there for longer, to cool things off. Earlier, the Federal Reserve Banks of Boston and San Francisco Presidents, Susan Collins and Mary Daly stressed that although inflation is slowing, future rate rises are likely. While Chicago Fed President Austan Goolsbee said that a soft landing is possible, inflation risks remain elevated, and the Fed should be fully committed to bringing inflation to 2%.

Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, holds above the 106.00 mark, near the highest level since November. Additionally, the 10-year yield climbed to 4.546%, a level not seen since October 2007.

Market participants will monitor US CB Consumer Confidence for September and New Home Sales due later on Tuesday. The attention will shift to the UK Gross Domestic Product (GDP) for the second quarter and the US Core Personal Consumption Expenditure (PCE) Price Index released on Friday.

 

GBP/USD

Overview
Today last price 1.2203
Today Daily Change -0.0009
Today Daily Change % -0.07
Today daily open 1.2212
 
Trends
Daily SMA20 1.2471
Daily SMA50 1.2649
Daily SMA100 1.2639
Daily SMA200 1.2434
 
Levels
Previous Daily High 1.2256
Previous Daily Low 1.2194
Previous Weekly High 1.2425
Previous Weekly Low 1.2231
Previous Monthly High 1.2841
Previous Monthly Low 1.2548
Daily Fibonacci 38.2% 1.2218
Daily Fibonacci 61.8% 1.2232
Daily Pivot Point S1 1.2185
Daily Pivot Point S2 1.2159
Daily Pivot Point S3 1.2123
Daily Pivot Point R1 1.2247
Daily Pivot Point R2 1.2282
Daily Pivot Point R3 1.2309

 

 

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