GBP/USD Price Forecast: Trades above 1.3500 after rebounding from 50-day EMA
GBP/USD rebounds after two days of gains, trading around 1.3560 during the Asian hours on Friday. The technical analysis of the daily chart points to a potential bearish reversal as the pair is positioned near the lower boundary of an ascending channel pattern. The 14-day Relative Strength Index (RSI), a momentum indicator, at 50 is neutral. RSI hovering around the midline would turn more supportive on a move above 50 and weaken below it.
The GBP/USD pair holds above the rising 50-day Exponential Moving Average (EMA) at 1.3496, while capped by the nine-day EMA at 1.3626. The short-term average is rolling over, restraining upside as the medium-term slope stays positive. The moving average structure keeps the broader tone supported, yet near-term traction is fading and favors consolidation before direction resumes. Read more…
GBP/USD drops to two-week low, around 1.3500 amid dovish BoE and firmer USD
The GBP/USD pair adds to the previous day’s dovish Bank of England (BoE)-inspired heavy losses and drifts lower for the third straight day on Friday. The downward trajectory is sponsored by sustained US Dollar (USD) buying and drags spot prices to a two-week low during the Asian session, with bears now awaiting a break below the 1.3500 psychological mark before placing fresh bets.
The nomination of Kevin Warsh as the next Federal Reserve (Fed) chair fueled speculations that the US central bank will be less dovish than expected. This, along with a rise in volatility, benefits the USD’s status as the global reserve currency. In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, climbs to a fresh high since January 23 and turns out to be a key factor exerting pressure on the GBP/USD pair. Read more…
GBP/USD sinks as BoE delivers dovish hold, April cut fully priced
The Pound Sterling (GBP) collapses against the US Dollar (USD) on Thursday after the Bank of England (BoE) decided to hold rates but opened the door for further easing, in a decision seen as a ‘dovish hold.’ Worse-than-expected US jobs data failed to halt the GBP/USD downfall, trading at 1.3529, down 0.90%.
Earlier, the BoE, on a 5-4 vote split, kept the Bank Rate at 3.75%, though some of the comments of the BoE’s Monetary Policy Committee (MPC), despite voting for a pause, provided dovish signals. Governor Andrew Bailey said that there is scope for further easing, but it is not exactly clear when and expects “quite sharp” inflation drop. Read more…
