GBPUSD D1
The British Pound (GBP) faced headwinds on Friday after a three-day rally, as the US Dollar (USD) strengthened. The GBP/USD pair dropped to around 1.2760 after the US Dollar Index (DXY) rebounded above 105.00. This rise in the USD came despite weaker-than-expected US economic data on Thursday. The data, released by the Bureau of Labor Statistics, showed that US inflation remained subdued. The Producer Price Index (PPI) rose 2.2% year-over-year in May, below market expectations and prior readings. However, the Federal Reserve's (Fed) revised economic outlook, indicating a potential interest rate cut by the end of 2024, bolstered
the USD. This shift in the Fed's stance countered the positive sentiment from the weaker inflation data. The GBP also faced pressure due to speculation that the Bank of England (BoE) might cut interest rates in the coming months. This prospect dampened investor confidence in the Pound. Reserve, hinting at fewer anticipated interest rate cuts. This, combined with sluggish economic growth in the UK, exerted downward pressure on the GBP. Technically, the GBP/USD currency pair is encountering resistance, with the price repeatedly unable to surpass the 1.28 mark, signaling caution among bullish traders, especially with the UK's national elections looming in July. While a significant sell-off has not occurred yet, analysts caution against waiting for confirmation before taking action. A notable decline in GBP/USD could signify the end of the recent upward trend. Looking ahead, several support levels may provide some relief for the Pound. The initial potential stopping point is approximately 1.2755-1.2750, with the 1.2715-1.2710 range offering temporary stability if the price falls further. A deeper decline could lead GBP/USD towards the critical 100-day SMA support, currently positioned near 1.2640-1.2635. A convincing breach below this level could strengthen bearish sentiment and prompt additional losses
The British Pound (GBP) faced headwinds on Friday after a three-day rally, as the US Dollar (USD) strengthened. The GBP/USD pair dropped to around 1.2760 after the US Dollar Index (DXY) rebounded above 105.00. This rise in the USD came despite weaker-than-expected US economic data on Thursday. The data, released by the Bureau of Labor Statistics, showed that US inflation remained subdued. The Producer Price Index (PPI) rose 2.2% year-over-year in May, below market expectations and prior readings. However, the Federal Reserve's (Fed) revised economic outlook, indicating a potential interest rate cut by the end of 2024, bolstered
the USD. This shift in the Fed's stance countered the positive sentiment from the weaker inflation data. The GBP also faced pressure due to speculation that the Bank of England (BoE) might cut interest rates in the coming months. This prospect dampened investor confidence in the Pound. Reserve, hinting at fewer anticipated interest rate cuts. This, combined with sluggish economic growth in the UK, exerted downward pressure on the GBP. Technically, the GBP/USD currency pair is encountering resistance, with the price repeatedly unable to surpass the 1.28 mark, signaling caution among bullish traders, especially with the UK's national elections looming in July. While a significant sell-off has not occurred yet, analysts caution against waiting for confirmation before taking action. A notable decline in GBP/USD could signify the end of the recent upward trend. Looking ahead, several support levels may provide some relief for the Pound. The initial potential stopping point is approximately 1.2755-1.2750, with the 1.2715-1.2710 range offering temporary stability if the price falls further. A deeper decline could lead GBP/USD towards the critical 100-day SMA support, currently positioned near 1.2640-1.2635. A convincing breach below this level could strengthen bearish sentiment and prompt additional losses
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