This week witnessed another low for the British pound. What's next?
GBPUSD has been hovering around the 1.2600 mark amidst a temporary surge in the US dollar's strength. Presently, the price is positioned below the confluence of the 20 and 50-day moving averages, which is a dynamic support zone. Additionally, a rebound from the 20-day Bollinger may proceed the new rally.
So, I'd expect GBPUSD to rebound within the next week. Friday being a holiday in the United States, trading volume is expected to remain subdued until Monday.
What's the rationale behind this view?
It's unlikely for the US dollar to grow as disinflation might continue to push it lower. Despite robust American GDP data and moderately hawkish remarks from Fed Chair Jerome Powell, yields for 30-year treasury bonds continue to decline, hinting at an anticipated decrease in inflation sooner or later.
Key events to monitor include the PCE publication on Friday, March 29th, and the non-farm payrolls report on Friday, April 5th.
Remember to manage risk at all times!
GBPUSD has been hovering around the 1.2600 mark amidst a temporary surge in the US dollar's strength. Presently, the price is positioned below the confluence of the 20 and 50-day moving averages, which is a dynamic support zone. Additionally, a rebound from the 20-day Bollinger may proceed the new rally.
So, I'd expect GBPUSD to rebound within the next week. Friday being a holiday in the United States, trading volume is expected to remain subdued until Monday.
What's the rationale behind this view?
It's unlikely for the US dollar to grow as disinflation might continue to push it lower. Despite robust American GDP data and moderately hawkish remarks from Fed Chair Jerome Powell, yields for 30-year treasury bonds continue to decline, hinting at an anticipated decrease in inflation sooner or later.
Key events to monitor include the PCE publication on Friday, March 29th, and the non-farm payrolls report on Friday, April 5th.
Remember to manage risk at all times!