Market Analytics and Considerations
Key Notes
- On Monday, the GBP/USD pair keeps climbing and reaches a month-top against a declining USD.
- The safe-haven dollar is under stress from predictions on smaller Fed interest rate increases and an upbeat risk tone.
- Any additional increases are restrained before Governor Bailey’s address at the BoE due to recession worries.
For the third time in a row, the GBP/USD pairing gains traction and soars all through the Asian Monday session to a one-month peak in the area of 1.2300. Nonetheless, the unit reverses some few pip first from daily crest and is now traded inside the 1.2260–1.2265 range, still up more than 0.30percentage points during the day.
On the opening day of a fresh week, the dollar plunges to a low point dating back 7- months amid mounting expectation that perhaps the Fed will tone down its aggressive approach. This is also seen to be a major driving force driving the GBP/USD cross upward. In light of hints of decreasing inflationary pressures, the markets now appear to be confident that perhaps the Fed may be approaching the end of its rate-raising phase.
After the US CPI statistics was issued this past week and revealed that consumer prices declined for the very first time in more over 2.5y ears in Dec, traders boosted their chances on future smaller Fed interest rate rises. Additionally, a number of FOMC policymakers supported a rate increase of 25 basis points in Feb. That, in addition to an encouraging risk tenor, contributes
However, the recent COVID-19 breakout in China and the extended Russia-Ukraine war have fanned fears of an impending downturn, which have kept market enthusiasm in check. Before Bank of England Andrew Bailey’s presentation during the early North American session on Monday, speculators likewise appear wary to make risky wagers on the GBP/USD pair.
Additionally, no significant business official indicators from the UK is slated for release, and the US exchanges will be closed in observance of Martin Luther King Jr. Day. In light of the gloomy picture for the UK economy, it is advisable to hold off on setting for any additional advancing action in the GBP/USD pair unless there is significant follow-through buying.
Technical levels
OVERVIEW |
|
Today last price |
1.2264 |
Today Daily Change |
0.0030 |
Today Daily Change % |
0.25 |
Today daily open |
1.2234 |
TRENDS |
|
Daily SMA20 |
1.2088 |
Daily SMA50 |
1.2038 |
Daily SMA100 |
1.1688 |
Daily SMA200 |
1.1997 |
LEVELS |
|
Previous Daily High |
1.2249 |
Previous Daily Low |
1.2151 |
Previous Weekly High |
1.2249 |
Previous Weekly Low |
1.2086 |
Previous Monthly High |
1.2447 |
Previous Monthly Low |
1.1992 |
Daily Fibonacci 38.2% |
1.2211 |
Daily Fibonacci 61.8% |
1.2188 |
Daily Pivot Point S1 |
1.2174 |
Daily Pivot Point S2 |
1.2113 |
Daily Pivot Point S3 |
1.2076 |
Daily Pivot Point R1 |
1.2272 |
Daily Pivot Point R2 |
1.2309 |
Daily Pivot Point R3 |
1.237 |