GBP/USD outlook: Extended narrowing range ahead of key events this week
Cable is trading within a narrow range around 1.24 handle in European session on Monday, extending near-term directionless mode.
Bulls were capped by the base of descending weekly cloud (1.2455) and so far unable to register a clear break above 1.2400, but hold grip, as the price continues to move above ascending 10DMA (currently at 1.2371), which tracks the action since Jan 6 and marks solid support.
January action is on track to end in another long bullish candle (fourth straight month of gains), which is a bullish signal, though offset by weekly bearish Doji, overbought conditions and fading bullish momentum on weekly chart. Read more...
GBP/USD remains confined in a range below 1.2400, awaits FOMC/BoE meetings this week
The GBP/USD pair kicks off the new week on a subdued note and seesaws between tepid gains/minor losses through the early European session. The pair remains confined in a multi-day-old trading range and is currently placed just below the 1.2400 round-figure mark.
Traders now seem to have moved to the sidelines ahead of this week's central bank event risks, which, in turn, fails to provide any meaningful impetus to the GB/USD pair. The Federal Reserve is scheduled to announce its decision at the end of a two-day policy meeting on Wednesday. This will be followed by the latest monetary policy update by the Bank of England (BoE) on Thursday and will help determine the next leg of a directional move for the major. Read more...
GBP/USD: Upside momentum seems to be losing traction – UOB
In the opinion of UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, further strength in GBP/USD could be running out of steam.
24-hour view: “We highlighted last Friday that ‘while upward momentum has waned, there is room for GBP to test 1.2450 first before the risk of a more sustained pullback increases’. However, GBP did not test 1.2450 as it traded between 1.2346 and 1.2419 before closing modestly lower at 1.2400 (-0.01%). The price actions appear to be part of a consolidation phase and GBP is likely to trade sideways today, expected to be between 1.2350 and 1.2425.” Read more...
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