GBP/USD: Bulls need a closing breakout above 1.3050 to regain control [Video]
The Cable rally has just begun to stall in the wake of the FOMC decision. Technically, we have been talking about the importance of the resistance band 1.2980/1.3050 and with the market turning back from yesterday’s high of 1.3005, this just adds further weight to its importance. Falling over this morning leaves the market stuck under this resistance band. However, it has also been a good response in recent sessions and yesterday’s rebound has broken a two week downtrend. It means that trend lines (both positive and negative) are being broken all over the place. The outlook for Cable is subsequently fairly uncertain.The bulls need a closing breakout above 1.3050 to regain control, whilst selling pressure needs to break back below 1.2760 to really suggest a continued correction. Read More...
Has pound absorbed its full share of bad news?
Since the beginning of this week, the pound has rallied a bit against the dollar. But the market is going through a lot of noise, coming out of the United Kingdom itself. The concerns over Brexit situation continues to worsen.
The UK government is progressing its controversial plan to rewrite the Brexit withdrawal agreement, and is showing no signs of backing down. The chances of a no-deal Brexit are rising notably with worries whether the Internal Markets Bill will make its way through the Commons and Lords successfully. Even if that happens, the European Union is highly unlikely to sign a free-trade agreement with the UK given the lack of trust, and threat of withdrawal agreement breach. Read More...
GBP/USD dives to fresh session lows, below 1.2900 mark post-BoE
The GBP/USD pair came under some fresh selling pressure and slipped below the 1.2900 mark, or fresh daily lows post-BoE announcement.
As was widely expected, the Bank of England left its benchmark interest rates and Asset Purchase Facility unchanged at 0.10% and £745 billion, respectively. In the accompanying policy statement, the UK central bank reiterated the risk of a longer period of elevated unemployment and acknowledged an uncertain growth outlook.
The statement further revealed that the BoE will continue to review a range of possible actions and also discussed the effectiveness of negative interest rates. The dovish sounding statement took its toll on the British pound, which, in turn, was seen as a key factor behind the GBP/USD pair's sudden fall of around 70-75 pips in the last hour. 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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.