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GBP/USD: Selling pressure on Cable has stabilised [Video]

Coming into the Fed meeting today, we see Cable once more at a key crossroads. Overhead resistance is a key barrier this morning. Initially the trendlines, with a confluence resistance of a two week downtrend and the underside of the old six month uptrend coming in around 1.2900/1.2930. Just overhead sits the key medium term overhead supply starting around 1.2980. There has been a notable improvement in the daily candlesticks in the past few sessions coming into the FOMC meeting, as the selling pressure on Cable has stabilised. However, given the breakdown of the six month uptrend, we see a far less positive medium term outlook now. A failure to recover back into the 1.30s will sustain what we see as a neutral outlook between 1.2650/1.3000. Expect elevated volatility today and how Cable sits when the dust settles will be key. Read More…

GBP/USD advances above 1.2970 as focus shifts to FOMC meeting

The GBP/USD pair preserved its bullish momentum during the European session on Wednesday and rose to its highest level in nearly a week at 1.2973. As of writing, the pair was up 0.65% on the day at 1.2970.

Earlier in the day, the data published by the UK’s Office for National Statistics showed that the annual inflation, as measured by the Core Consumer Price Index (CPI), slumped to 0.9% in August from 1.8% in July. However, this reading came in higher than the market expectation of 0.6%. Read More…

GBP/USD anlaysis: Remains below weekly PP

Since yesterday, the GBP/USD exchange rate has been consolidating near the 1.2900 level.

It is likely that the currency pair could gain support from the 55– and 100-hour SMAs near 1.2870 and extend gains in the short run. A possible upside target is the 200-hour moving average near 1.2990.

In the meantime, note that the pair would have to exceed the weekly PP at 1.2945. If the given resistance holds, it is likely that the rate could maintain its consolidation. Read More…