GBP/USD: Dollar recovery turned Cable around after a five day bull run [Video]
A dollar recovery has once more turned Cable around after a five day bull run. It is incredible to see that even amidst the volatility that has so enormously ramped up recently, there is still a tendency for Cable to trend for a handful of days in one direction and then retrace once more. The strong negative candlestick which has closed the market back below $1.3000 once more, renewed the negative bias and re-opens the pressure on the 50% Fibonacci retracement (of $1.2193/$1.3515) at $1.2855. On so many occasions has Cable used these Fib levels, that closing decisively below the 38.2% Fib (at $1.3010) is a key move. Read more...
GBP/USD Analysis: Tests medium-term channel
Yesterday, the GBP/USD exchange rate declined to the lower boundary of the medium-term ascending channel at 1.2870. During Wednesday morning, the rate was testing the lower channel line.
From a theoretical point of view, it is likely that a reversal north could occur in the nearest future. In this case the currency pair could re-test the monthly R1 at 1.3096. Read more...
GBP/USD holds steady above 1.2900 mark, moves little post-UK budget announcement
The GBP/USD pair managed to hold its neck above the 1.2900 round-figure mark, albeit lacked any strong follow-through and remained below session tops post-UK budget announcement.
As investors looked past the Bank of England's surprise move to cut interest rates by 50 bps points, the pair consolidated the intraday volatile swings. Bulls seemed rather unimpressed by the UK budget proposal to increase the level of spending on public infrastructure.
Adding to this, the UK Chancellor of the Exchequer Rishi Sunak unveiled massive coronavirus fiscal measures, which included providing temporary loans to businesses and 80% guarantee of bank loans of up to 1.2m to small businesses.
The budget proposals were exactly the kind of anticipated targeted stuff that would help businesses to survive the coronavirus outbreak. The British pound did get a minor boost but struggled to gain any meaningful traction and held steady near the 1.2920-30 region. 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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.