GBP rally as a signal that the worst of the markets is over
GBPUSD is trading near 1.2560, having added 3.3% to the monthly lows of May 13. We see a smooth recovery in the Pound from those lows, which is also in line with some easing of risk pull in global markets.
The 0.65% strengthening of GBPUSD on Monday morning looks like a signal that the recovery in risk demand has moved from a corrective bounce after oversold levels but is getting on a more serious track, bringing the pair back to the levels of the beginning of the month.Interestingly, the Pound is giving even stronger signals of risk demand recovery than Bitcoin or the US stock indices, where we saw new multi-month lows inside on Friday afternoon. Read more...
GBP/USD outlook: Cable extends recovery on fresh risk appetite, but overall picture is negative
Cable rose to the highest in over two weeks in early Monday, lifted by improved risk sentiment on comments from US President Biden about possible reduction of tariffs on China. Fresh strength signals an extension of last week’s 2.05% rise (the biggest weekly advance since July 2020), adding to initial reversal signal, generated by weekly bullish engulfing pattern.
Improving daily techs (ascending 14-d momentum broke into positive territory and double bull-crosses of 5/10 and 5/20DMA’s underpin the action) while fresh strength broke through important Fibo barrier at 1.2512 (38.2% of 1.3090/1.2155) and eye pivotal level at 1.2622 (50% retracement / daily Kijun-sen), close above which would add to positive signals. Read more ,,,
GBP/USD rides wave of US dollar weakness, now in the upper 1.2500s as key events loom
GBP/USD is on Monday benefitting from a wave of US dollar weakness and was last trading in the upper 1.2500s, its highest levels in more than two weeks and not far below monthly highs in the mid-1.2600s. Cable’s 0.7% gain on Monday has taken the pair’s rebound since mid-month lows in the mid-1.2100s to an impressive 3.5%.
Whilst the latest leg of strength is being attributed to US dollar weakness, with some citing optimism about China lockdown easings as spurring weakness in the safe-haven buck, sterling was supported last week after UK labour market and consumer price inflation supported the case for further tightening from the BoE, even as evidence continues to build that the UK economy is suffering amid its worst cost-of-living squeeze in decades. Read more ...
|Today last price||1.2575|
|Today Daily Change||0.0089|
|Today Daily Change %||0.71|
|Today daily open||1.2486|
|Previous Daily High||1.25|
|Previous Daily Low||1.2438|
|Previous Weekly High||1.2525|
|Previous Weekly Low||1.2217|
|Previous Monthly High||1.3167|
|Previous Monthly Low||1.2411|
|Daily Fibonacci 38.2%||1.2476|
|Daily Fibonacci 61.8%||1.2461|
|Daily Pivot Point S1||1.2449|
|Daily Pivot Point S2||1.2412|
|Daily Pivot Point S3||1.2387|
|Daily Pivot Point R1||1.2511|
|Daily Pivot Point R2||1.2537|
|Daily Pivot Point R3||1.2574|
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.