GBPUSD hovers at one-week bottom at 1.2735. Anticipates American economic indicators for additional stimulus.
Key Highlights & Considerations
The GBPUSD falls for another day in a row, reaching a more than weekly trough.
The dollar’s value maintains the heated American PPI-optimism advances, putting a little strain on the unit.
Investors are currently looking to the nation’s macroeconomic statistics to give a boost prior to the FOMC meeting the following week.
The sterling dollar pair falls for its second consecutive session. Reaching a fourth instance of a down move after the previous 5. Which reaches a low of a week over the Asian trade on Fri. The spot exchange rate is now trading at 1.2735 and appear to be exposed to additional declines amid follow-up U.S. dollar purchasing.
Fundamental Insights
The higher-than-anticipated American PPI indicated that inflation remained resilient. Cooling investor hopes of swift rate decreases by the Fed Reserve. It in consequently, resulted in an interim rise in US government bond rates. That, together with the typically negative mood in the markets for stocks. Which is expected to support the secure haven USD therefore impose modest weakness upon the GBPUSD pairing.
At the same time, present-day pricing suggests the US Fed may start decreasing rates of interest at its Jun board session. The following is supported with a fresh trend decrease in the US government bond rates. And this may discourage Greenback supporters from taking bold predictions.
Investors can choose to patiently wait for further information regarding the Federal Reserve’s rate-cutting strategy. Prior to trading for the following phase of the U.S dollar’s lateral move. As a result, the attention will continue to be towards the 2-day FOMC gathering, which begins the following Tuesday. Meanwhile, the Empire States State Manufacturers Index, Factory Production, and Preliminary Michigan Consumer Confidence Index. – All due out on this Friday, could give the pound’s value against the US dollar a boost.
5- Hourly Technical Indicators & Signals
| Name | Value | Action |
| RSI(14) | 40.636 | Sell |
| STOCH(9,6) | 35.036 | Sell |
| STOCHRSI(14) | 3.389 | Oversold |
| MACD(12,26) | -0.000 | Sell |
| ADX(14) | 39.293 | Sell |
| Williams %R | -90.861 | Oversold |
| Name | Value | Action |
| CCI(14) | -173.3235 | Sell |
| ATR(14) | 0.0029 | Less Volatility |
| Highs/Lows(14) | -0.0027 | Sell |
| Ultimate Oscillator | 38.446 | Sell |
| ROC | -0.372 | Sell |
| Bull/Bear Power(13) | -0.0088 | Sell |
Short-Term Trend Bearish (intraday)
Technical Synopsis
| Name | Type | 5 Minutes | 15 Minutes | Hourly | Daily |
| GBPUSD
1.2738 |
Moving Averages: | Strong Sell | Strong Sell | Sell | Buy |
| Indicators: | Sell | Buy | Strong Sell | Buy | |
| Summary: | Strong Sell | Neutral | Strong Sell | Buy |
