On Wednesday’s European period, GBPUSD rose to around 1.2760 level. The strong PMI figures from the UK add to the GBP advance compared to the U.S. dollar The initial – S&P Global/CIPS Service Barometer for Jan rose to 53.8 from 53.4 in the month before. Furthermore, the manufacturing PMI rose from 46.2 for 47.3. Meanwhile, the Composites PMI rose to 52.5 from 52.1 level.
GBPUSD Highlights
the pound’s rises after UK PMI data outperforms market forecasts in Jan.
In the month of January, the United Kingdom’s manufacturing and service PMIs increased to 53.8 & 47.3, accordingly.
American Treasury yields fall on expectations of US Fed rate reductions in May, undermining the value of the U.S dollar.
BoE Rate Policy Awaited – Bets On
These positive UK (PMI) results suggest that the BoE could abstain from introducing fiscal easing measures at its next Feb meet. Traders will probably stay wary as they watch fresh economic indications to create impetus in the run-up of the May summit. There is talk that BoE may contemplate starting rate decreases as soon early May. Alongside the prospect of up to three additional reductions in 2024 in mind.
The US currency is under pressure from the bonds market’s lower momentum. Which is being pushed by market projections that the US Fed would start cutting interest rates in May as well. A 25 bps drop in the rate of interest is fully priced in for the month of May. Showing expectations of an additional accommodating fiscal policy.
Nevertheless, investors is factoring in the probability that the Federal Reserve may not make a modification at its forthcoming Feb session. This reflects an aura of caution amongst market investors. While they awaited more signs from the Fed. Moving ahead, investors will be watching closely for the publication of the S&P Global PMI figures from the USA (US) on Wed.
GBPUSD Exchange Rate for Ewdnesdat (Today)
▲- Upward Trend
1.270.01 (0.42%)Update 24/01/2024 16:19:00
High1.27726
Low 1.26851
Open 1.26904
Previous Close 1.27433
52Wk High 1.29263 Since 7/27/2023-1.19%
52Wk Low 1.20760 Since 10/3/20235.04%
20-Day Average-1.27073
200-Day Average-1.25207
14-Day RSI – 41.58904
14-Day Stochastic – 68.20695
GBPUSD Daily Technical Indicators & Trading Signals
| Name | Value | Action |
| RSI(14) | 55.984 | Buy |
| STOCH(9,6) | 55.903 | Buy |
| STOCHRSI(14) | 82.201 | Overbought |
| MACD(12,26) | 0.002 | Buy |
| ADX(14) | 27.287 | Sell |
| Williams %R | -22.396 | Buy |
| Name | Value | Action |
| CCI(14) | 77.7232 | Buy |
| ATR(14) | 0.0085 | Less Volatility |
| Highs/Lows(14) | 0.0000 | Neutral |
| Ultimate Oscillator | 54.045 | Buy |
| ROC | 0.513 | Buy |
| Bull/Bear Power(13) | 0.0040 | Buy |
