GBP/USD is registering its second consecutive red candle as the bears are trying to push GBP/USD below its recent trading range following yesterday’s US CPI release. The 200-day simple moving average (SMA) and the October 26, 2023 ascending trendline are acting as strong support points at this moment, testing the bear’s determination.
Momentum indicators appear to tentatively be on the bears’ side. The RSI is trading below its midpoint and possibly preparing to drop to the lowest point since mid-October. Similarly, the stochastic oscillator is trying to edge below its moving average and then set course towards its oversold territory. Only the Average Directional Movement Index (ADX) seems uninterested in the current movement as it remains stuck below its 25-midpoint and thus pointing to a trendless market. Read more…
After closing in negative territory on Tuesday, GBP/USD continued to push lower in the European session on Wednesday and touched its lowest level in over a week below 1.2550. The near-term technical outlook suggests that the pair has more room on the downside before turning technically overbought.
January Consumer Price Index (CPI) readings from the US triggered a US Dollar rally in the American trading hours on Tuesday and caused GBP/USD to decline sharply. On a monthly basis, the CPI and the Core CPI, which excludes volatile food and energy prices, rose 0.3% and 0.4%, respectively. Both of these reading came in above analysts’ estimates and provided a boost to the USD. Read more…
The Pound Sterling (GBP) faces an intense sell-off in Wednesday’s early European session as the United Kingdom Office for National Statistics (ONS) has reported softer-than-anticipated inflation data for January. Annual headline and core Consumer Price Index (CPI) rose steadily by 4.0% and 5.1%, respectively, while the monthly headline figure deflated significantly by 0.6%.
Surprisingly soft inflation report and a moderate growth in Average Earnings are expected to allow Bank of England (BoE) policymakers to consider early rate cuts than market participants had anticipated earlier. Read more…
