GBP/USD Price Analysis: Hovers below 1.2400 backed by 38.2% Fibonacci retracement
GBP/USD extends losses on the second consecutive day, trading lower around 1.2390 during the Asian session on Thursday. The 1.2350 major level emerges as the key support, following the next support around the psychological level at 1.2300.
A break below the latter could weigh on the GBP/USD pair to navigate the region around the 21-day Exponential Moving Average (EMA) at 1.2282 level following the weekly low at 1.2213. Read more...
GBP/USD consolidates above 1.2400, traders seem non-committed amid mixed fundamental cues
The GBP/USD pair consolidates the overnight rejection slide from the 100-day Simple Moving Average (SMA), around the 1.2500 psychological mark, or a two-month top, and oscillates in a narrow band during the Asian session on Thursday. Spot prices, meanwhile, manage to hold above the 1.2400 round figure and remain at the mercy of the US Dollar (USD) price dynamics.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, struggles to capitalize on the previous day's modest recovery from its lowest level since September 1 amid dovish Federal Reserve (Fed) expectations. The bets were lifted by the softer US CPI report released on Tuesday, which showed consumer inflation was cooling faster than anticipated. Moreover, the markets are now pricing in a greater chance that the Fed will start cutting rates during the first half of 2024, which keeps the US Treasury bond yields depressed and acts as a headwind for the Greenback. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD advances to fresh tops post-US CPI
The weak stance of the Greenback encourages EUR/USD to gather extra steam following the release of US inflation data in April, which came in lower than expected, as measured by the CPI.
GBP/USD extends the recovery past 1.2600 on US CPI
GBP/USD maintains its upward momentum well and sound and breaks above the 1.2600 mark on the back of extra losses in the US Dollar after the release of US inflation data tracked by the CPI.
Gold climbs to three-week peaks following US inflation
Gold prices uphold their positive price action following April’s US inflation data, which came in short of expectations according to the CPI, while US yields maintain their bearish trend unchanged so far on Wednesday.
Ripple’s discounts for institutional clients stir debate among attorneys discussing SEC lawsuit
Ripple price consolidates in a tight range around $0.50 on Wednesday as the Securities and Exchange Commission (SEC) legal battle against payment-remittance firm Ripple intensifies with two key issues in focus this week.
US inflation and Retail Sales data add to pressure on Fed to signal rate cut
The US CPI report for April was mostly in line with expectations. The annual rate for headline price growth fell to 3.4% from 3.5%, while the core rate declined to 3.6% from 3.8%.