Daily technical and trading outlook – GBP/USD
GBP/USD - 1.2155.. Cable initially penetrated Fri's 1.2302 low to 1.2263 in Asia n despite staging a recovery to 1.2300, price tumbled after downbeat UK GDP n intra-day decline accelerated in NY to a 2-year trough of 1.2108 in NY.
On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven USD's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in Feb suggests a major low is made. Despite hitting a 3-year peak of 1.4250 in Jun 2021, subsequent selloff to a 23-month 1.2156 low in mid-May may confirms long-awaited correction has occurred. Read more ...
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GBP/USD bearish outlook worsens, signals discouraging [Video]
GBPUSD switched to a recovery mode on Monday following last week’s brutal sell-off, which worsened the broad outlook and squeezed the price to a new two-year low of 1.2100. The previous low of 1.2154 is currently limiting upside pressures as the momentum indicators provide little hope for a meaningful rally. Explaining that, the slight upturn in the RSI is not convincing yet since the indicator remains well dipped in the bearish area, while the negative slope in the Stochastics suggests that the bears have more fuel in the tank. Read more ...
GBP/USD surrenders modest intraday gains, hangs near two-year low just above 1.2100 mark
The GBP/USD pair surrendered modest intraday recovery gains and dropped to the lower boundary of its daily trading range during the first half of the European session. The pair was last seen hovering around the 1.2115-1.2110 area, just a few pips above a two-year low touched the previous day.
The early optimistic move in the equity markets fizzled out rather quickly amid concerns that a more aggressive move by major central banks to curb inflation would pose challenges to the global economy. This assisted the safe-haven US dollar to trim a part of its intraday losses, which, in turn, was seen as a key factor that attracted fresh selling around the GBP/USD pair. Read more ...
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