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GBP/USD Strengthens Above 1.2400 Amid Dollar Challenges"The GBP/USD pair consolidates its overnight slide from the 100-day Simple Moving Average (SMA) around the psychological level of 1.2500, or the two-month high, trading in a narrow range in Thursday's Asian session. Meanwhile, the spot price attempts to hold above the significant 1.2400 mark, contingent on the price dynamics of the U.S. Dollar (USD). The U.S. Dollar Index (DXY), tracking the greenback against a basket of currencies, struggles to capitalize on the modest recovery from its lowest since September 1, amid the Federal Reserve's dovish expectations. These bets were reassessed after Tuesday's U.S. CPI report, indicating a milder-than-expected decline in consumer inflation, suggesting a cooling economy. Furthermore, markets are increasingly pricing in the possibility of the Fed starting interest rate cuts in the first half of 2024, driving down U.S. Treasury bond yields and acting as a hurdle for the greenback. Additionally, the prevailing risk-acceptance environment is seen weakening the safe-haven status, providing some support for the GBP/USD pair. However, the upward trend is constrained as more anticipate the Bank of England (BoE) initiating interest rate cuts soon, reinforced by a slight drop in UK consumer inflation on Wednesday. In fact, the UK's monthly CPI remained unchanged, and the annual rate plummeted sharply from 6.7% to 4.6% in October – hitting a two-year low. Moreover, the core CPI also decreased from 6.1% in September to 5.7%. The mixed fundamental backdrop ensures caution among risk-seeking traders, waiting for clear short-term direction, especially with no significant macroeconomic data from the UK on Thursday. Meanwhile, the U.S. economic calendar includes regular weekly jobless claims, the Fed Philly Manufacturing Index, and industrial production figures. This, along with U.S. bond yields and broader risk sentiment, may influence USD price dynamics and allow traders to seize short-term opportunities around the GBP/USD pair.
by Larissa-Trader
GBPJPY → Struggles around 188.00, on soft UK inflationThe British Pound (GBP) remains steady against the Japanese Yen (JPY) during Wednesday’s mid-North American session after reaching a daily high of 188.24; the pair has fallen below the 188.00 mark, courtesy of weak inflation data from the UK. Therefore, the GBP/JPY hovers around 187.94, virtually unchanged. From a technical perspective, the FX:GBPJPY is upward biased, but a daily close below 188.00 could pave the way for a deeper pullback, which could extend toward the 187.00 figure. If sellers push prices below that level, the next demand area could be the Tenkan-Sen at 185.75m followed by the Senkou Span A at 185.13. the next support would be 185.00. On the other hand, the GBP/JPY uptrend would continue if it remains above 188.00, with the first resistance seen at the current year-to-date (YTD) high of 188.28. Sentiment further improvement would put into play the November 2015 swing high at 188.80 before buyers challenge the 190.00 figure.
Short
by tradingconmike
2
GBP/USD Slips to 1.2450 on Weak UK Inflation DataGBP/USD faces modest downward pressure, dropping to 1.2450 in European trading on Wednesday. UK CPI inflation fell to 4.6% YoY in October from 6.7% in September, causing the British Pound to lose ground. The pair struggles to find firm footing above the 1.2300 level on daily closing basis, potentially paving the way for an extended recovery toward the psychological level of 1.2350. The 14-day Relative Strength Index (RSI) points upwards around the midline, indicating an ongoing upward momentum for the pair. The next resistance level is envisioned at the 200-day Simple Moving Average (SMA) at 1.2437. However, if the upward trend stalls, immediate support will likely be seen at the 50-day SMA at 1.2255, below which the 21-day SMA at 1.2205 may test bullish commitments. Further decline could challenge the 1.2100 demand area. The extended three-day recovery of GBP/USD in European trading on Tuesday, driven by positive mixed employment data in the UK, appears to be limited as traders exercise caution ahead of the highly significant US Consumer Price Index (CPI) data. The outcome of Wednesday's UK inflation data could significantly impact the Bank of England's interest rate outlook, adding volatility to the British Pound. Ahead of the crucial US CPI data, FXStreet's Senior Analyst Yohay Elam notes that unexpected results above 0.2% could lead to market reevaluation. A surprise decline in inflation might fuel Wall Street's rally while exerting pressure on the US Dollar. However, an as-expected release may immediately positively affect stocks and create pressure on the US Dollar, even if the core CPI remains high. Simultaneously, the pair may receive signals from improving risk sentiment, reflected in the slight uptick of 0.12% in the US S&P 500 futures contract.
by Gwen_Humuna
GBPJPY → Next major target set at the 190.00 levelIn the mid-North American session, FX:GBPJPY rallied and refreshed eight-year highs at around 188.28 on Tuesday, after economic data from the US sparked speculations the Federal Reserve wouldn’t tighten monetary policy any further. Investors see that as a green light to buy riskier assets, to the detriment of the safe-haven status of the Japanese Yen (JPY). The GBP/JPY trades at 188.08, up more than 2%. Given the abovementioned fundamental intro, from a technical perspective, the GBP/JPY uptrend seems overextended, with buyers targeting the 190.00 mark, a level that hasn’t been reached since September 2008. A breach of the latter will immediately expose the September 2008 high at 198.34 ahead of testing 200.00. On the other hand, the GBP/JPY first support is seen at today’s low of 186.04, which, once cleared, te pair could dive to the Tenkan-Sen level at 185.50, followed by the Kijun-Sen at 184.52. Once cleared, the next support would be the Senkou-Span A at 185.01.
Long
by tradingconmike
GBP/USD Maintains Uptrend Above 1.2250 GBP/USD saw an increase from the 20-day SMA to 1.2280 on Monday and is consolidating around 1.2275 in the early Asian trading session, supported by the ongoing weakness of the US Dollar. Attention is shifting towards employment data in the UK and crucial US CPI figures on Tuesday. The currency pair reversed its direction after testing the 1.2200 level, with an upward trending line, the 23.6% retracement of the latest downtrend, and the 200-period Simple Moving Average (SMA) on the 4-hour chart aligning, emphasizing the significance of the support level and the sellers' hesitation. On the upside, GBP/USD faces immediate support at 1.2260 (SMA50) followed by 1.2300 (38.2% Fibonacci retracement) and 1.2340 (static level). Support levels are set at 1.2200, 1.2140 (static), and 1.2100 (psychological level). What are your thoughts on this currency pair?
by Larissa-Trader
1
Forget USDJPY: Time to watch GBPJPY for intervention? The UK’s inflation rate due this week (early early Wednesday morning), and there is a huge projected drop in the reading from last month, from 6.7% to 4.8%. This huge drop leaves a lot of room for disappointment, and higher CPI reading could exert upside pressure on the GBPJPY, which is already at a multi-month high. It is for this reason I bring up the possibility that traders should watch for intervention in this pair, whether direct or indirect. Supporting the possibility of a bullish GBPJPY is the rejection of yesterday's significant downside wick (touching the 50-day moving average on the 1-hour chart). This rejection was followed by a further move to the upside. Further upside will see the pair challenge the three-month high at 186.77 and open the possibility for a correction/ intervention. In the past, ¥185.00 has proven to be somewhat of an anchor point for the pair, but perhaps a more accurate support is now ¥185.50? Don’t forget that US CPI numbers are due this week too, one day before UK numbers hit the market.
by BlackBull_Markets
GBP/USD Surpasses 1.2200 Level After UK GDPGBP/USD extends its slide below the 1.2200 level in early US trading. UK GDP data reveals a better-than-expected 0.6% year-on-year growth in the third quarter. However, these figures fail to propel the currency pair as investors await next week's key data for clearer direction. The ascending trendline, the Fibonacci retracement level of the latest downtrend, the 100-period Simple Moving Average (SMA) on the 4-hour chart, and the 200-period SMA collectively form a robust support level at 1.2200. If GBP/USD drops below this level and confirms it as resistance, the next downside targets could be set at 1,2140 (static level) and 1,2100 (static level). On the upside, 1,2250 (SMA 50) is considered a dynamic resistance level ahead of 1,2275 (SMA 20) and 1,2300 (38.2% Fibonacci retracement level).
by Larissa-Trader
GBPUSD Will recover after sharp decline“The Federal Open Market Committee (FOMC) is committed to achieving a monetary policy stance that is restrictive enough to reduce inflation to 2% over time; We are not confident that we have reached such a position,” Mr. Powell said in his opening speech to a policy panel at the 24th annual Jacques Polak Research Conference, organized by the International Monetary Fund. position. The Fed chief acknowledged that US inflation has fallen over the past year but said it was still "far above our 2% target", Powell said, but signaled the Fed was not ready to accept that inflation was sustainable low level. Inflation “has given us some fake news,” he added. On the H4 frame, the RSI indicator dropped to 40, showing that selling pressure is accumulating. Important support is gradually forming at the 1.2200/20 area, with the 23.6% Fibo level of the down phase from the peak of September 5 to the bottom of November, the downtrend line and MA lines 100 and 200. If this support is broken, , the next target for sellers will be 1.2130 and 1.2100.
by MrTrongVo
GBPJPY, Short, H1 timeframe, Daytrade, Scalping.Are you ready to make some money? Let’s talk about GBPJPY! 🤑 Our screener has identified that JPY is a relative strong currency in this session, and we’ve found that GBPJPY has broken out of the support zone and is headed towards the downside. But don’t worry, this is just a little and short retracement in the daily uptrend. So, what’s the plan? We could consider the nearest two target levels (184.857 and 184.626), with a stop loss at 185.35 and a sell entry zone between 185.1 to 182.28. With this strategy, you’ll be well on your way to making some serious cash. Good luck! 💰 Thank you for considering my analysis and perspective and if this post was useful to you, don't forget to subscribe and like.
Short
by ICT_Trader_SB
GBP/USD Consolidates Below 1.2200GBP/USD has entered a consolidation phase after testing the resistance at 1.2200. The upward momentum of the British Pound seems to pause, preparing for the Bank of England (BoE) policy announcement on 'Super Thursday.' The Relative Strength Index (RSI) on the 4-hour chart remains near 50, indicating indecision in GBP/USD. The 100-period Simple Moving Average (SMA) forms immediate resistance at 1.2175, followed by 1.2200 (23.6% Fibonacci retracement level of the latest downtrend, SMA 200). A close above this level in the 4-hour timeframe could attract technical buyers and pave the way for an extended recovery towards 1.2260 (psychological level). On the flip side, the initial support lies at 1.2100 (psychological, static level) followed by 1.2050 (recent downtrend low) and 1.2000 (psychological, static level).
by Gwen_Humuna
GBP/USD Extends Gains Above 1.2150 Level"In the US trading session, GBP/USD rose to its highest level since last Wednesday, surpassing the 1.2170 mark. The pair was supported by a weaker US dollar on Monday, as market participants awaited US employment data, as well as the Fed and BoE meetings. The Relative Strength Index (RSI) on the 4-hour chart remained below 50, and GBP/USD closed the last 4-hour candle below the 20-period Simple Moving Average (SMA), indicating the downtrend is still intact. On the flip side, 1.2075 (a static level) is considered a temporary support before 1.2050 (the recent low) and 1.2000 (a psychological level). The 50-period SMA formed dynamic resistance at 1.2140, ahead of 1.2180 (the 100-period SMA) and 1.2200 (the 23.6% Fibonacci retracement level, and the 200-period SMA).
by Gwen_Humuna
1
GBP/JPY Faces Uncertainty Amid Central Bank Policy DecisionsThe GBP/JPY currency pair is currently in a volatile state, influenced by contrasting policy expectations from the Bank of England (BoE) and the Bank of Japan (BoJ). While the BoE is likely to maintain its benchmark interest rate, the BoJ may adjust its yield curve control policy, lending support to the Yen. Technical indicators suggest a bearish outlook for the pair, with key levels to watch around 180.40 and 180.00. Traders are exercising caution, awaiting crucial policy updates from both central banks later this week. A nuanced trading strategy is advised. ANALYSIS: Central Bank Policies: The Bank of England (BoE) is expected to maintain its benchmark interest rate, which has been putting pressure on the GBP. On the other hand, the Bank of Japan (BoJ) is speculated to adjust its yield curve control (YCC) policy, lending some support to the JPY. This divergence in central bank policies suggests a bearish outlook for the GBP/JPY pair. Technical Indicators: The pair has failed to sustain above the 50-day Simple Moving Average (SMA), and oscillators on the daily chart are drifting into negative territory. These technical indicators support a bearish bias. Economic Indicators: Lackluster employment figures and mixed PMIs from the UK, coupled with rising inflation in Japan, add to the bearish sentiment. Market Sentiment: Traders are currently in a holding pattern, awaiting central bank decisions. This cautious sentiment generally favors safe-haven currencies like the JPY over riskier assets like the GBP. Given the current economic indicators, central bank policies, and technical signals, a bearish outlook seems more likely for the GBP/JPY pair in the short to medium term. However, it's crucial to keep an eye on upcoming central bank announcements as they could introduce volatility and potentially invalidate the current setup. Always exercise proper risk management and consult with a financial advisor before executing any trades.
Short
by RichDadph-FX
EUR/GBP Extends Gains Near 0.8720 Ahead of German Data"EUR/GBP has continued its upward trend for the second consecutive day, trading near the 0.8720 level in early European trading on Monday. The currency pair received support ahead of significant economic data releases from Germany. However, preliminary Gross Domestic Product (GDP) data for Germany is expected to show a 0.3% decline for the quarter, with a 0.7% year-on-year decrease, compared to a 0.2% decline in the previous report. Additionally, initial forecasts for the Consumer Price Index (MoM) indicate a decrease of 0.2%, down from the previous 0.3%. Furthermore, the Euro weakened following the European Central Bank's (ECB) decision to maintain the deposit interest rate at 4.0%, reflecting concerns about the deteriorating economic outlook in the Eurozone. ECB President Christine Lagarde is navigating a delicate balance, steering the central bank through a challenging economic landscape. Maneuvering between a weakening economy and strong inflationary pressures is no easy task. With the increasing complexity of monitoring the Middle East crisis, relying solely on data seems unwise. On the other hand, the British Pound (GBP) may face challenges as traders adopt a cautious stance ahead of the Bank of England's (BoE) policy meeting scheduled for Thursday. Many predictions suggest that the central bank will maintain its current interest rate at a 15-year high of 5.25% due to growing concerns about economic recession. The UK economy is feeling the strain due to high-interest rates, adding to the challenges posed by persistent inflation. Economic data indicates significant declines in various sectors, coupled with high inflation, putting additional pressure on household budgets.
by Gwen_Humuna