GBP/USD outlook: Bulls loosen grip ahead of key US data
Cable eases from new three-month high in European trading on Thursday, as daily Doji candle on Wednesday signaled indecision and overbought daily studies prompted a partial profit-taking. Failure to register a daily close above 1.2719 Fibo barrier (61.8% of 1.3141/1.2037) and subsequent weakness add to initial signals of bull trap and increases risk of pullback.
Initial support lays at 1.2655 (5DMA), followed by rising 10DMA (1.2581) which should ideally contain dips to keep larger bulls intact, with deeper correction to expose pivotal supports at 1.2466/58 (converging 200 and 20DMA’s / broken Fibo 38.2%). Read more...
GBP/USD attracts some buyers near 1.2700, US PCE data looms
The GBP/USD pair attracts some buyers below the 1.2700 psychological mark during the early Asian session on Thursday. That being said, the softer US Dollar (USD) offers some support to the major pair. At press time, GBP/USD is trading near 1.2695, up 0.02% on the day.
The US Bureau of Economic Analysis (BEA) revealed on Thursday that the US economy grew to 5.2% in the third quarter (Q3) from the previous reading of 4.9%, above the market consensus of 5.0%. Federal Reserve (Fed) Governor Michelle Bowman said he sought to keep alive the possibility of more rate hikes, raising concerns about the longevity of inflationary pressure. Read more...
GBP/USD grapples to extend gains near 1.2700, US PCE Price Index eyed
GBP/USD struggles to continue its winning streak that began on November 23, treading water around 1.2700 during the Asian session on Thursday. However, the GBP/USD pair marked a three-month high at 1.2733 on Wednesday on a softer US Dollar (USD).
Bank of England (BoE) Governor Andrew Bailey asserted that the central bank is committed to taking necessary measures to bring inflation down to its 2.0% target. He emphasized that despite efforts, the BoE has not observed sufficient progress to be confident in achieving this goal. This hawkish remark might have provided upward support for the Pound Sterling (GBP). Read more...
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