GBP/USD subdued in the mid-1.3100s as traders await fresh catalysts
It’s been a subdued start to the week for pound sterling as market participants continue to digest last week’s dovish BoE policy announcement that threw cold water on expectations for multiple further interest hikes this year. GBP is currently sat at the bottom of the G10 performance table, and down about 0.2% on the day versus the buck, in otherwise quiet FX market trade amid a lack of notable fresh macro drivers. Markets are awaiting fresh developments regarding the Russo-Ukraine war, as well as a barrage of Fed and BoE speak plus a smattering of tier one and two UK/US data releases throughout the week. Read more...
GBP/USD Outlook: Confined in familiar trading range, Powell’s speech eyed for fresh impetus
The GBP/USD pair struggled to capitalize on Friday's goodish rebound from the vicinity of the 1.3100 mark and kicked off the new week on a softer note. A combination of supporting factors acted as a tailwind for the US dollar, which, in turn, exerted some downward pressure on the pair through the early European session. The Russia-Ukraine conflict has already entered the fourth week, so far, has shown no signs of ending. This, along with the Fed's hawkish outlook, assisted the greenback to build on the previous session's modest gains and dragged the pair lower. Read more...
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GBP/USD Price Analysis: Bulls are firmer above 100-EMA, indicating volatility contraction ahead
The GBP/USD pair is oscillating in March 17’s intraday range of 1.3093-1.3203. The cable’s performance has remained subdued in the Asian session and is likely to continue to get contracted until a decisive move. On an hourly scale, the cable is going through some significant reversal setups. The asset is forming a head and shoulder pattern that signals a bullish reversal. Usually, a head and shoulder formation denote a sustained inventory distribution from institutional investors to retail participants. It is worth noting that at the end of the right shoulder, there is a contraction in the size of ticks. This indicates a volatility contraction, which is followed by an expansion in the size of the ticks and volumes after a decisive breakout. Read more...
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