FOMC minutes kick-start a bearish storm


GBP/USD Price Analysis: FOMC minutes kick-start a bearish storm

GBP/USD was hit hard on the back of the Federal Open market Committee minutes today resulting in a quick drop into an area that might be expected to act as support. The following is an analysis that illustrates the price action and potential outcomes from both a bullish and bearish standpoint. The price action would be expected to result in an onwards move to the upside from support. However, as illustrated below, the recent sell-off has left a strong bearish candle close and a subsequent additional bearish open in the current candle. This opens the prospects of a downside continuation below support and into buy stop territory. Read more…

GBP/USD Forecast: Pound approaches key resistance that could cap gains

GBP/USD has managed to stage a decisive rebound after dropping below 1.3500 on Tuesday, and it has continued to stretch higher early Wednesday. The pair is closing in on a key technical resistance level that could cap its potential gains. Renewed dollar weakness mid-week is helping GBP/USD preserve its bullish momentum. Following Monday’s impressive upsurge, the benchmark 10-year US Treasury bond yield lost its traction late Tuesday and is trading in negative territory during European trading hours, making it difficult for the dollar to find demand. Read more…

GBP/USD Analysis: Bulls turn cautious near 100-DMA, US ADP report/ FOMC minutes awaited

The GBP/USD pair attracted fresh buying on Tuesday and rallied nearly 100 pips intraday, rising to the highest level since November 10. The British pound remains one of the top-performing major currencies amid the Bank of England’s hawkish decision to start the rate hike cycle in December. Adding to this, hopes that the Omicron outbreak won’t derail the UK economy, along with rising bets for an additional BoE tightening further underpinned the sterling. In fact, the UK Prime Minister Boris Johnson suggested that there would be no further tightening of measures soon. Moreover, an additional 25 bps BoE rate hike in February is nearly a done deal and the markets expect a total of four increases in 2022. Read more…





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