GBP/USD Forecast: Ready to move up? Moderna's jabs serve as a boost, the Fed poses a risk
And then there were three – Moderna's vaccinations are joining those by Pfizer/BioNTech and AstraZeneca in Britain's battle against COVID-19. The UK already seems to have a lid over the spread of the disease – contrary to France which is under a strict lockdown and Germany, which is about to enter one. The deployment of the new inoculation is set to help contain the spread and reach more people. It also implies the potential for a quicker reopening.
However, GBP/USD depends heavily on movements in US yields. After cable bulls took profits on Tuesday, the fall in returns on American Treasuries helps sterling recover. Investors await President Joe Biden's speech on the infrastructure program, which has higher chances of passing after the Senate parliamentarian ruled it can pass via reconciliation, a quicker process.If the US grows faster, the rest of the world may benefit. Read more...
GBP/USD getting ready to lose more
The British Pound saw three impulsive waves last week, extending the gains into Monday and Tuesday for this week as well. However, the up waves were continuously receding followed by a widespread down bar with very high volume on the 4-hour chart.
The 15-minute chart shows a recent break of yesterday’s low of New York session at 1.3800 just ahead of the London session. This could be a great entry point. On the 1-hour chart, the price shows the same bearish action. The intraday support for the pair lies at 1.3778 ahead of 1.3731. Read more...
GBP/USD outlook: Cable dips to one-week low ahead of UK data
Cable holds in red for the second day and fell to one-week low (1.3772) in early European trading on Wednesday, in extension of Tuesday’s 0.53% drop. Recovery stall and subsequent weakness point to a bull-trap above 1.3887 Fibo barrier (38.2% of 1.4238/1.3670) that weighs on near-term action.
Fresh weakness cracked pivotal support at 1.3794 (50% retracement of 1.3670/1.3918 / 10DMA) with today’s close below here to add to negative signals and keep near-term bias with bears. Studies on 4-hr chart are in negative setup and signal further weakness but daily techs are still mixed as momentum remains negative but the action remains within thick daily cloud (spanned between 1.3712 and 1.3795). Read more...
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