GBP/USD approaches key resistance that could cap gains


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…

GBPUSD

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…

GBPUSD


GBP/USD needs to overcome 1.3560 resistance to extend its rally

GBP/USD has managed to stage a decisive rebound after dropping below 1.3500 on Tuesday and continued to stretch higher early Wednesday. The pair is closing in on a key technical resistance that could cap its potential gains, according to FXStreet’s Eren Sengezer.

“In the second half of the day, the ADP Employment Change data for December will be featured in the US economic docket. Markets expect the employment in the private sector to increase by 400,000. A better-than-expected print could lift US T-bond yields higher while helping the greenback regather its strength and vice versa.” Read more…

 




Source link


Leave a Reply