Daily technical and trading outlook – GBP/USD
GBP/USD - 1.3642.. Cable extended Mon's rise at Asian open to 1.3614 in Asia y'day n despite intra-day pullback to 1.3585 in European morning, price ratcheted higher in NY to 1.3637 on usd's weakness due to risk-on sentiment.
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 on safe-haven usd's demand following free fall in global stocks, sterling's rally to as high as 1.28 12 (Jun) on broad-based usd's weakness, then to an 8-month peak of 1.3482 in Sep suggests a major bottom is in place. Read more...
GBP/USD clings to gains near weekly tops, moves little post-UK CPI
The GBP/USD pair maintained its bid tone near weekly tops, around the 1.3665 region and had a rather muted reaction to the UK macro data.
The pair built on this week's solid rebound from the 1.3520 region and gained traction for the second consecutive session on Wednesday amid a softer tone surrounding the US dollar. The market bets for additional US fiscal stimulus increased further following the US Treasury Secretary nominee Janet Yellen's confirmation hearing before the Senate Finance Committee on Tuesday. Read more...
GBP/USD Price Analysis: Bulls yearning for a firm break above 1.3700
GBP/USD is building onto the recent recovery rally, as the bulls look to recapture the 1.3700 level amid persistent US dollar’s weakness and upbeat UK CPI figures. Further, the UK’s incredible efforts of ramping up inoculations also seem to bode well for the pound, as the risk-on mood keeps it alive and kicking.
The cable has additional room for advances, as depicted by its daily technical chart. The price trends higher in a potential rising channel formation, with the immediate upside likely capped at 1.3700, the orange horizontal trendline resistance. Read more...
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