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GBP/USD Soars as Powell's Dovish Tone Sparks Bullish MomentumGBP/USD Soars as Powell's Dovish Tone Sparks Bullish Momentum In a surprising turn of events, the GBP/USD experienced a robust bullish rally on Thursday, surging above the 1.2600 level and reaching 1.2660. This surge followed the Federal Reserve's (Fed) decision to keep interest rates unchanged, coupled with Chairman Jerome Powell's unexpectedly dovish statements during the post-meeting press conference. While the decision to maintain the interest rate at 5.25%-5.5% was largely anticipated, the real market-moving revelation came from the revised dot plot. The dot plot hinted at a potential 75 basis points rate reduction in 2024, signaling the Fed's cautious approach to avoid prolonged periods of high interest rates. Powell's emphasis on this strategy triggered a rally in equity markets and a sharp decline in both the US Dollar Index and Treasury bond yields. From a technical standpoint, the GBP/USD exhibited resilience and a strong bullish rebound, finding support at the 61.8% Fibonacci level. The breakthrough key resistance levels suggests the potential for a bullish continuation. Traders are now closely monitoring for further upside, expecting the GBP/USD to sustain its growth momentum amid the evolving dynamics in the US monetary policy landscape. Our preference Long positions above 1.2500 with targets at 1.2735 & 1.2850 in extension.
Long
by FOREXN1
1
GBPCAD H4 | Rising into 38.2% Fibo resistanceGBP/CAD is rising towards a pullback resistance and could potentially reverse off this level to drop lower. Sell entry is at 1.70790 which is a pullback resistance that aligns close to the 38.2% Fibonacci retracement. Stop loss is at 1.71575 which is a level that aligns with the 61.8% Fibonacci retracement level and sits 30 pips above a pullback resistance. Take profit is at 1.69643 which is a swing-low support level. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Stratos Markets Limited (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Stratos Europe Ltd, previously FXCM EU Ltd (www.fxcm.com): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Stratos Trading Pty. Limited (www.fxcm.com): Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com Stratos Global LLC (www.fxcm.com): Losses can exceed deposits. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘TFA Global Pte Ltd’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by TFA Global Pte Ltd. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants.
Short
by FXCM
2
GBP/USD: Inflation Data Triggers Volatility Amidst BoE and Fed..GBP/USD: Inflation Data Triggers Volatility Amidst BoE and Fed Meetings As anticipated in our previous analysis, GBP/USD experienced a shift in momentum following Tuesday's CPI report, climbing to around 1.2600 before reversing course and dipping below 1.2515. The upcoming US inflation data for November is poised to be the catalyst for the next significant market move, setting the stage for key policy meetings by the Federal Reserve (Fed) and the Bank of England (BoE). UK Annual Wage Inflation Decline: The UK witnessed a notable decline in annual wage inflation, measured by the change in Average Earnings Including Bonus, which dropped sharply to 7.2% in the three months to October from the previous 8%. Average Earnings Excluding Bonus followed suit, registering a decrease from 7.8% to 7.3% in the same period. Potential Impact on BoE Policy: While the BoE is expected to maintain its current policy stance this week, the soft wage inflation readings could be viewed favorably by policymakers. The concerns over robust pay growth hindering efforts to bring inflation back down to the 2% target may find some relief in these figures. The central bank's response to evolving economic indicators will be closely monitored in the coming weeks. Technical Analysis and Bearish Setup: Our analysis maintains an unchanged bearish setup for GBP/USD, with anticipated targets at 1.2500 and 1.2480 in extension. The softening wage inflation data and potential implications for BoE policy contribute to the prevailing bearish sentiment. Conclusion: As GBP/USD navigates through volatile market conditions, the upcoming US inflation data will likely play a pivotal role in shaping the currency pair's trajectory. With the BoE policy meeting on the horizon, the impact of wage inflation on central bank decisions adds an extra layer of complexity to the market dynamics. Traders and investors should remain vigilant as they assess the evolving economic landscape and adjust their strategies accordingly. Our preference Short positions below 1.2585 with targets at 1.2500 & 1.2480 in extension.
Short
by FOREXN1
1
GBP/USD Dynamics: Navigating Economic Indicators and Central ...GBP/USD Dynamics: Navigating Economic Indicators and Central Bank Uncertainties The GBP/USD pair has found modest support for the second consecutive day, buoyed by a softer USD and a positive risk sentiment in the markets. Despite the initial boost, the pair remains below the overnight swing high, with spot prices holding steady in the 1.2580-1.2585 region at the time of writing. This article delves into the factors influencing the current GBP/USD scenario, shedding light on the UK jobs data, the US Dollar's trajectory, and the looming impact of central bank decisions. GBP/USD Price Movement: As of the latest update, the GBP/USD pair is trading at 1.2571, situated within a defined range area. The potential for a shift in the lower direction towards the 1.2500 level hinges on the outcome of the crucial US Consumer Price Index (CPI) report scheduled for release today. Traders are keenly observing this event, as a favorable report for the US could revert the price towards the lower end of the range. UK Jobs Data and BoE Influence: The UK's Office for National Statistics (ONS) reported a rise in unemployment-related benefits by 16K in November, slightly below the anticipated 20.3K. Notably, the previous month's reading was revised downward from 17.8K to 8.9K. However, the positive sentiment was dampened by a deceleration in Average Earnings during the three months to October, fueling speculation that the Bank of England's rate-hiking cycle might face headwinds in 2024. USD Movement and Market Sentiment: Conversely, the US Dollar experiences downward pressure, attributed to a decline in US Treasury bond yields and growing expectations that the Federal Reserve (Fed) will refrain from interest rate hikes. The Greenback's status as a safe-haven currency is further challenged by a positive tone in equity markets, prompting some repositioning trades ahead of the imminent release of the US consumer inflation figures. Central Bank Events on the Horizon: The GBP/USD pair's trajectory is poised for potential shifts as the market anticipates key central bank events. The Federal Reserve's policy decision, set to be announced after a two-day meeting on Wednesday, and the Bank of England's meeting on Thursday will likely exert considerable influence on the GBP's performance. As traders await these crucial events, caution is advised, given the potential impact on the recent bounce from the psychological 1.2500 mark and the monthly low reached last Friday. In the unfolding narrative of the GBP/USD pair, a complex interplay of economic indicators, central bank decisions, and market sentiment takes center stage. As traders navigate this dynamic landscape, the upcoming US CPI report and central bank meetings will undoubtedly steer the course of the currency pair. Caution remains paramount in positioning for potential market shifts, emphasizing the need for flexibility and responsiveness in the face of unfolding events. Our preference Short positions below 1.2620 with targets at 1.2500 & 1.2480 in extension.
Short
by FOREXN1
5
🔥 GBPUSD : First Long , Then SHORT (READ THE CAPTION)With a new review of the GBP/USD chart, we see that the price has finally started to correct after growing up to 1.27350 and has now entered a demand zone, which can be a stimulus for further price growth! Currently, the most important condition for further growth of this currency pair is maintaining the support of the range of 1.24470 to 1.25500! Be careful that after this short growth, the price may fall again and this price series will fill the liquidity voids and FVGs that have been created, which are marked on the chart! Please share your opinion about the possible trend of this chart with me and support us with your likes and comments. Best Regards , Arman Shaban
Short
by ArmanShabanTrading
1