Articles tagged with "gbp"

GBP/JPY has flown up to a fresh 18-year high and even with a recent bout of USD-strength, GBP/USD has held up relatively well.

The week ends with GBP/USD down around -0.6%, reflecting a clear loss of short-term momentum in the pound sterling. At the same time, the US dollar is showing renewed stability and continues to hold a stronger demand bias against its main rivals.

During today’s session, a consistent neutral bias has continued to shape GBP/USD price action in the short term, with the pair showing barely a 0.1% variation.

The British Pound has held up well, outperforming the Euro for the past two weeks. And now the dominant trends in both GBP/USD and GBP/JPY have shown pullbacks and support tests.

As the trading week progresses, GBPUSD has shown a decline of around 0.4%, with weakness in the pound and strength in the U.S. dollar.

The British Pound was flying high just a month ago on the way to fresh four-year highs but GBP/USD has funneled into a falling wedge since then with a massive test at the 1.3500 psychological level.

GBP/USD has now recorded three consecutive bearish sessions in the short term, resulting in a decline of more than 1%, reflecting a renewed and consistent selling bias in recent price action.

The FTSE 100 edged higher to close in on last week’s record, as the pound weakened following the release of UK wages and Jobs data that puts a March rate cut firmly on the table, barring any surprises in tomorrow’s inflation report. Unless we see a sharp turnaround in data, I would be expecting another rate cut in June, and possibly more in the summer if inflation risks ease. This should keep the longer term FTSE 100 forecast firmly supported and keep a lid on sterling.

Markets remain positioned for further Bank of England easing even as inflation sits above target. The next run of UK labour market and CPI figures will help determine whether that optimism is justified or prematurely priced.

In just two trading sessions, and as the week approaches its close, GBP/USD has fallen by more than 1.2%, signaling a clear bearish bias in the short term. Selling pressure intensified shortly after the Bank of England (BoE) decision.

GBP/USD broke out in a big way two weeks ago as the US Dollar was melting down and the pair can still be justified for USD-weakness scenarios, although the backdrop in GBP/JPY may be cleaner for such a push as we go into tomorrow’s Bank of England rate decision.

GBP/USD has rallied up to a fresh four-month high and remains one of the more attractive major pairs for USD-weakness, although a rush of Yen-strength has brought question to GBP/JPY.