GBP/USD holds positive ground near 1.2770 amid the weakening USD
The GBP/USD pair gains momentum around 1.2770 heading into the European session on Tuesday. The pair trades in positive territory for the second day in a row amid the weakening of the Greenback. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, drops to 103.22.
From the technical perspective, GBP/USD holds above the 50- and 100-hour Exponential Moving Averages (EMA) on the one-hour chart, which means further upside looks favorable. Meanwhile, the Relative Strength Index (RSI) stands above 50, within bullish territory, suggesting that buyers are likely to retain control in the near term. Read more...
GBP/USD trades with modest intraday gains around 1.2770 region amid softer USD
The GBP/USD pair trades with a positive bias for the second successive day on Tuesday and touches a three-day high, around the 1.2770 area during the Asian session. Spot prices, however, remain confined in a familiar trading range held over the past three weeks or so. This warrants some caution before positioning for an extension of the recent bounce from a one-and-half-month low, around the 1.3615 area, also marking the 100-day Simple Moving Average (SMA) support.
Expectations that the Bank of England (BoE) will increase interest rates further continue to underpin the British Pound (GBP and act as a tailwind for the GBP/USD pair. In fact, the current market pricing indicates a more than 80% chance of a 25 bps lift-off at the next BoE meeting in September. The bets were lifted by the fact that wages in the UK touched a new record growth rate in the second quarter, which adds to worries about long-term inflation even after 14 consecutive rate hikes. Adding to this, the upbeat UK GDP report and slightly higher UK CPI print support prospects for further BoE policy tightening. Read more...
GBP/USD Price Analysis: Cable seeks buyer’s attention but 1.2800, UK economic woes prod upside
GBP/USD seesaws around 1.2755-60 as bulls hit barriers during early Tuesday in Asia, snapping a four-week downtrend, as well as posting a firmer start of the week.
The Guardian came out with the news quoting Britain’s opposition Labour Party leader Keir Starmer to mention that UK growth is forecast to be slowest in the Group of Seven Nations (G7). The news also cites the opposition party terming the British economy as stuck in a low-growth trap. Read more...
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