View Single Post
Old 31-08-2023, 09:39
xtreamforex's Avatar
xtreamforex xtreamforex is offline
Level V Lasers Member
Join Date: Oct 2015
Posts: 528
Send a message via ICQ to xtreamforex Send a message via AIM to xtreamforex Send a message via Yahoo to xtreamforex
Default GBP/USD Holds Near 1-Week High, USD Support, BoE and Fed Awaited

The GBP/USD pair is currently maintaining a stable position, having achieved progress over the course of the past three days. During the Asian session on Thursday, the pair exhibited a trading pattern characterized by subtle fluctuations, with its value hovering around 1.2720. This particular price point has experienced minimal changes throughout the day, residing just slightly below the peak reached in the preceding day – a notable high sustained for a duration of one week.

In contrast, the US Dollar (USD) is drawing support from a significant technical indicator known as the 200-day Simple Moving Average (SMA). This support has effectively halted the USD’s recent decline from its elevated position reached back in June. This occurrence acts as a resistance factor for the GBP/USD pair, influencing its movement. In parallel, the anticipation of potential interest rate hikes by the Bank of England (BoE) continues to bolster the British Pound. This, in turn, shapes a prudent outlook for traders with a bearish stance on the pair.

The Deputy Governor of the Bank of England, Ben Broadbent, has articulated the possibility of prolonged maintenance of restrictive policy rates due to the enduring effects of persistent price surges. On the other side of the equation, the prospect of the Federal Reserve (Fed) enacting a temporary halt in its series of rate hikes is exerting downward pressure on the US Dollar. This counteracting force serves to mitigate the potential downward shifts in the GBP/USD pair.

Read More : Daily & Weekly Analysis On Xtreamforex
Reply With Quote