GBP/USD battles with SMAs within sideways channel [Video]
GBP/USD is still holding near the mid-level of the medium-term trading range of 1.2520-1.2785. The pair is battling with the 50-day simple moving average (SMA) at 1.2673 again, with the technical oscillators suggesting weak momentum on price. The MACD is flattening near its trigger and zero lines, while the RSI is pointing slightly down, trying to cross below the 50 level.
In the case of more notable gains, the pair may manage to hit the upper boundary of the consolidation area at 1.2785 ahead of the five-month peak of 1.2825. Steeper increases could drive the market towards the 1.3000 psychological mark. Read more...
GBP/USD outlook: GBP/USD keeps firm tone ahead of Powell's testimony
Cable extends the bull-leg from 1.2599 higher low into third straight day and broke above significant barriers at 1.2700 zone (Fibo 61.8% of 1.2827/1.2518 / daily cloud top). Positive near-term sentiment received fresh boost from weaker than expected US Feb non-manufacturing PMI which pushed the dollar lower, while markets await more information about the US rate outlook from Fed Chair Powell’s two-day testimony (Wed/Thu).
Bulls may accelerate further and risk retesting key barriers at 1.2785 (2024 high) and 1.2827 (Dec 28 peak) in dovish shift from Powell, as bets for the first rate cut in June grow, following warnings from the recent weaker than expected US economic data. Read more...
Pound Sterling rallies as BoE is expected to deliver rate cuts after Fed
The Pound Sterling (GBP) exhibits strength against the US Dollar in Thursday’s London session as investors hope that the Bank of England (BoE) will start reducing interest rates after the Federal Reserve (Fed). Market expectations for a rate cut by the BoE and the Fed are for June and August policy meetings, respectively.
Apart from expectations that the BoE will choose to cut interest rates later than other central banks of the Group of Seven economies (G-7), the announcement of the scope of fiscal stimulus in the United Kingdom’s budget for 2024 has also strengthened the Pound Sterling. Read more...
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