GBP/USD Forecast: Falling out of the channel has good reasons, and more may come
Ten days instead of seven – of self-isolation in case of showing coronavirus symptoms. That is likely to be the new announcement from the British government, and GBP/USD is also confined under 1.30.
The Federal Reserve's dovish decision triggered a false break above 1.30 – as expected – and the downfall is sending it below the uptrend channel.
What did the Fed do? The world's most powerful central bank left its policy unchanged but painted a gloomier picture of the economy. Jerome Powell, Chairman of the Federal Reserve, said that high-frequency data is softer since coronavirus cases increased from mid-June. Read More...
GBP/USD Analysis: Struggles to find acceptance above 1.3000, US GDP eyed for fresh impetus
The GBP/USD pair prolonged its recent strong bullish momentum and continued scaling higher on Wednesday amid the emergence of some fresh US dollar selling. The pair moved back above the key 1.30 psychological mark during the US session after the Fed delivered a more dovish message. As was widely expected, the US central bank decided to leave the Fed funds target rate unchanged at 0-0.25%. The Fed also pledged to keep rates near zero until it is confident that the economy has weathered the recent events and is on track to achieve its maximum employment and price stability goals.
The accompanying policy statement indicated that members tied the pace of recovery on the developments surrounding the coronavirus pandemic. In the post-meeting virtual press conference, the Fed Chair Jerome Powell that there are signs that the continuous increase in COVID-19 cases is weighing on the economic activity and reiterated to use a full range of tools to support the economy. Read More...
GBP/USD outlook: Bulls look for renewed attack at 1.3017 Fibo barrier after consolidation
Cable is consolidating under new nearly five-month high at 1.3013, posted on Wednesday's initial probe through psychological 1.30 barrier. Today's action so far showed shallow dip, keeping immediate focus at 1.3017 Fibo barrier (76.4% of 1.3514/1.1409), but overbought daily techs continue to warn. Bids are seen at 1.2915/1.2887 (rising 5DMA / Fibo 23.6% of 1.2479/1.3013), with deeper pullback to find footstep above 1.2813/00 zone (former high / Fibo 38.2% / rising 10DMA) to keep bulls intact. Firm break above 1.3000/17 pivots would open way towards targets at 1.3199 (9 Mar high) and 1.3209 (2020 high, posted on 31 Jan). Read More...
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