GBP/USD Forecast: Correction is over, fresh Powell-powered attack on 1.42 looks imminent
One hundred pips off the highs but in a far better shape – Thursday's GBP/USD chart is showing an exit out of the overbought territory and fundamental conditions have also improved. Markets seemed to have been waiting for a further reassuring from Jerome Powell, Chairman of the Federal Reserve, before making another convincing move higher. The upbeat mood is adverse for the dollar, despite higher bond yields.
The world's most powerful central banker seemed determined to push inflation higher, aiming to reach the Fed's 2% target within three years. With investors fearing higher prices – and rate hikes – much sooner, Powell all but dismissed fears of rising prices and committed to printing dollars. Read more...
GBP/USD analysis: Trades below 1.4200
Yesterday, the GBP/USD exchange rate failed to exceed the psychological level at 1.4200. It is likely that the currency pair could gain support from the 55–" and 100-hour SMAs, as well the weekly R1 in the 1.4100 area. Thus, some upside potential could prevail in the market.
Note that the pair could face the resistance level–"the weekly R3 at 1.4299. If the given level holds, the rate could bounce off. Otherwise, the pair could target the 1.4350/1.4400 range. Read more...
GBP/USD holds steady near mid-1.4100s
The GBP/USD pair refreshed daily lows during the early European session, albeit quickly recovered few pips thereafter. The pair was last seen trading near mid-1.4100s, up around 0.10% for the day.
Following an early uptick to the 1.4170 region, the pair witnessed some selling and quickly retreated around 50 pips in the last hour. However, a combination of factors helped limit any further decline, instead assisted the GBP/USD pair to attract some dip-buying near the 1.4120 region. Read more...
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