Daily technical and trading outlook – GBP/USD
GBP/USD - 1.3985.. Although cable caught a bid in Asia Wed n ratcheted higher fm 1.4077 to 1.4132 at NY open on cross buying in sterling, price later tumbled to a 5-week low of 1.3983 after Fed's hawkish tilt, then 1.3972 today.
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 late Feb suggests a major low is made. Read more ...
GBP/USD Outlook: Bears likely to target 1.3900 mark
The GBP/USD pair on Wednesday struggled to capitalize on its intraday positive move, instead witnessed a dramatic turnaround and tumbled nearly 150 pips from weekly tops. The pair gained some positive traction following the release of hotter-than-expected UK inflation figures. In fact, the headline UK CPI jumped above the Bank of England's target for the first time in almost two years and came in at 2.1% YoY in May. This marked a sharp acceleration from April's 1.5% and also surpassed consensus estimates for a reading of 1.8%. Read more...
GBP/USD bounces off multi-week lows, upside seems limited
The GBP/USD pair reversed an intraday dip to fresh six-week lows and was last seen trading in the neutral territory, below the key 1.4000 psychological mark.
The pair witnessed some selling during the early European session and dropped to the lowest level since May 7, though lacked any strong follow-through. The downtick was exclusively sponsored by strong follow-through buying around the US dollar, which remained well supported by a sudden hawkish shift by the Fed. Read more...
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