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Market news: The U.S. Federal Housing Finance Agency (FHFA) called on Congress to investigate Federal Reserve Chairman Powell.Germanys DAX30 index closed at 23,786.85 points on Wednesday, July 2, up 69.44 points, or 0.29%; Britains FTSE 100 index closed at 8,773.33 points on Wednesday, July 2, down 12.00 points, or 0.14%; Frances CAC40 index closed at 7,738.45 points on Wednesday, July 2, up 75.86 points, or 0.99%; Europes STOXX 50 index closed at 5,318.55 points on Wednesday, July 2, up 36.12 points, or 0.68%; Spains IBEX35 index closed at 14,037.57 points on Wednesday, July 2, up 46.57 points, or 0.33%; Italys FTSE MIB index closed at 39,778.00 points on Wednesday, July 2, up 216.70 points, or 0.55%.July 2, U.S. Treasury Secretary Benson said Tuesday night that he thinks the Federal Reserve may cut interest rates in September or "earlier" because Trumps tariffs have so far only caused mild inflation. "I think the standard is that tariffs are not inflationary. If they were to follow that standard, I think they might act earlier, but certainly before September," Benson said. "I guess this tariff disharmony syndrome will even happen at the Fed." Benson made the above remarks as Trump increased pressure on the Federal Reserve and Powell to cut interest rates by as much as 3 percentage points.The bid-to-cover ratio for the U.S. 4-month Treasury bond auction as of July 2 was 3.04, compared with 3.13 in the previous session.The winning rate for the U.S. 4-month Treasury bond auction until July 2 was 4.185%, compared with the previous value of 4.20%.

GBP/USD Price Analysis: Bearish Dollar Pressure Exposes a Drop to Near 1.2500

Daniel Rogers

Apr 27, 2022 09:51

The GBP/USD pair has been collapsing like a house of cards since Friday, when it fell below the two-week-old resistance level of 1.2973. The asset has declined by around 3.70 percent during the last four trading sessions and shows no signs of reversal at the moment.

 

On a daily basis, the negative break of the Falling Channel has bolstered the greenback bulls. The chart pattern's top boundary is drawn from the June 2021 highs of 1.4249, while the lower boundary is drawn from the April 2021 low of 1.3669. When the Falling Channel is broken, volume expands and ticks get wider.

 

The 10- and 20-period Exponential Moving Averages (EMAs) are going down at 1.2838 and 1.2945, respectively, adding to the downside filters.

 

Additionally, the Relative Strength Index (RSI) (14) has moved into the negative zone of 20.00-40.00, indicating the possibility of a new downward impulsive wave.

 

Following a colossal decline, a pullback appears imminent. As a result, investors should wait for a fall to reach the 1.2800 round level roadblock before initiating new short positions. Responsive selling at 1.2800 will pull the asset towards the 1.2600 and 1.2500 round level supports, respectively.

 

On the other hand, if the asset surpasses the psychological resistance level of 1.3000, the cable may perform nicely. This will push the pair closer to Thursday's high of 1.3090, and then to a three-week high of 1.3147.

Daily GBP/USD Chart

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