GBP/USD outlook: Action in early Monday lacks direction but overall picture remains bearish
Cable is consolidation after 1.1% drop on Friday, which was contained by 5DMA, with a narrow range in early Monday suggesting a lack of direction.
Daily studies are bearishly aligned with strong negative momentum and MA’s in bearish setup that keeps the downside vulnerable.
On the other side, Friday’s hammer candle after strong rejection on probe through psychological 1.20 level, signal formation of bear-trap and generate initial signal which needs more upside action for confirmation. Read more...
GBP/USD Forecast: Pound holds its ground, awaits next catalyst
GBP/USD has edged slightly higher early Monday after having closed the third straight week in negative territory. The improving risk sentiment helps the British pound stay resilient against its rivals but the near-term technical outlook doesn't yet point to a buildup of bullish momentum.
GBP/USD fluctuated wildly in the second half of the previous week as investors digested the US Federal Reserve and the Bank of England's (BOE) policy decisions. The Fed hiked its policy rate by 75 basis points (bps) and the BOE raised its rate by 25 bps. Both central banks voiced their commitment to stay on the tightening path until they see convincing signs of price pressures easing. Read more...
GBP/USD steadily climbs to 1.2270-80 region, fresh daily high amid weaker USD
The GBP/USD pair built on its modest intraday gains and climbed to a fresh daily high, around the 1.2275-1.2280 region during the mid-European session.
Against the backdrop of the post-FOMC slide in the US Treasury bond yields, a generally positive risk tone exerted some downward pressure on the safe-haven US dollar on Monday. This, in turn, was seen as a key factor that assisted the GBP/USD pair to regain positive traction and recover a part of Friday's losses. That said, any meaningful recovery move still seems elusive, warranting caution for aggressive bullish traders. Read more...
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