GBPUSD Outlook: New bears have found a step above key support and are watching US inflation data for a signal
Cable is consolidating in a tight range, following Wednesday’s 1.6% drop, which retraced more than 50% of the recent rise from 1.1146/1.1599.
Although a reversal pattern has formed on a daily chart, new bears face strong headwinds from significant support at 1.1319 (daily thick cloud top/61.8% Fibo) which so far protects the downside and prevents confirmation of the reversal.
Daily studies are currently mixed, but should remain slightly biased higher as long as the stock remains above the cloud, although a lift and close above 10DMA (1.1427) is needed to relaunch the trades. bulls and an extension above the 1.15 psychological level to confirm. Read more…
GBPUSD Forecast: Sterling Needs To Recover 1.1400 To Attract Buyers
GBPUSD began to fluctuate in a relatively narrow range on Thursday after posting large losses on Wednesday. The pair is trading below key resistance levels and the technical outlook suggests that buyers remain on the sidelines. Nonetheless, the market’s reaction to October’s US inflation data is likely to provide the next directional cue for the pair.
Absent any high-impact macro data releases, the risk-averse market environment allowed the US dollar to strengthen against its major rivals on Wednesday. Although US stock index futures are trading slightly higher on the day, it is too early to assume that risk flows have returned to the markets. Read more…
GBPUSD holds modest gains to find acceptance above 1.1400 ahead of US CPI
GBPUSD attracts some dip buying near the 1.1350 region on Thursday and recoups some of the heavy losses from the previous day. Spot prices are holding on to intraday gains throughout the first half of the European session, but appear to be struggling to capitalize on the move past the 1.1400 round number.
A slight drop in US Treasury bond yields, as well as a positive tone around equity markets, did not help the safe-haven US dollar take advantage of the overnight rebound from a multi-week low. Other than that, some trade repositioning ahead of the crucial US consumer inflation numbers is capping the greenback’s upside, which, in turn, appears to be providing support for GBPUSD. Read more…