GBPUSD is still oscillating around 1.2300. The pair is failing to make a clear shift in both directions and drifting at near 1.2300 range
GBPUSD range bound as BOE Governor Bailey abstained from commenting and US CPI.
GBPUSD has been able to extend Monday’s gains so far in the session, but support was encountered near 1.2330. If the duo is unable to maintain its position above 1.2300, buyers may become cautious.
The risk-positive environment and easing concerns over a worsening global financial situation It made it difficult for the USD to maintain its competitive edge over its key competitors. Which led to a rise in the GBPUSD exchange rate.
The FTSE 100 Index of the UK began the day firmly higher but soon fell back. The fact that the FTSE’s decline and GBPUSD’s pullback occurred equally indicates that risk aversion is still driving the pair’s movement.
The GBPUSD pair from the US dollar’s current weakness
This week, the dollar has been under some general pressure as concerns over a potential banking catastrophe have subsided. Despite the well-publicized struggles of a few medium-sized lenders in the US due to rising interest rates, and the acquisition of the troubled giant Credit Suisse. The market seems more confident that revisions made to bank balance sheets since the gloomy days of 2008 will have the desired effect.
Technical Perspective
The upside of the trading band in which the pound is currently trading has shown to be incredibly resilient. This is now 1.24592, which is still significantly higher than the present market.
Since December of the previous year, that level has frequently dampened the bulls’ passion. And it appears very possible that it will do so again if pushed. The duo must first maintain its place over the psychological 1.21 handle before that can happen.
Although it appears likely right now, a look at the trading over the previous week, reveals some relatively narrow daily ranges near that level. Suggesting the market is not confident it can hold up here Before the five-month bottom of 1.18032 on March 8th. Shows, it is likely to get some support in the area of 1.2172 bands.
