GBP/USD Bears take a breather after post-election fall

GBP/USD outlook: Bears take a breather after post-election fall

Cable edges higher following Wednesday’s post-US election 1.1% drop, generating an initial signal of recovery, after bears repeatedly experienced strong downside rejection.

Double failure to register clear break of Fibo support at 1.2846 (76.4% of 1.2664/1.3434) points to formation of a double-bottom pattern (1.2843/34) as nearby 200DMA (1.2813) also produced headwinds to bears. Read more…

GBP/USD in the red for six weeks

GBPUSD took a sharp dive to a two-month low of 1.2833 on Tuesday as the return of Trumponomics gave fresh impetus to the greenback.

On Wednesday, the 50% Fibonacci retracement level of the April-September rally came to support the market ahead of the BoE and Fed rate decisions, but with the price failing to hold above the ascending trendline from September 2022 and struggling to push past 1.3000 in recent days, the downside risks remain in play. Read more…

GBP/USD Forecast: Pound Sterling recovery on the line, markets await BoE and Fed

GBP/USD lost over 1% on Wednesday and registered its lowest daily-close since mid-August. The pair corrects higher toward 1.2950 in the European morning on Thursday as investors prepare for the Bank of England’s (BoE) and the Federal Reserve’s (Fed) monetary policy decisions.

The unabated US Dollar (USD) strength weighed heavily on GBP/USD on Wednesday as markets reacted to Donald Trump’s victory in the US presidential election. The benchmark 10-year US Treasury bond yield rose nearly 4% and the USD Index, which gauges the USD’s valuation against a basket of six major currencies, registered its largest one-day gain, rising over 1.5%. Read more…