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    GBP/USD dips back below 1.4200 handle, awaits Fed decision Haresh Menghani

    The GBP/USD pair failed to extend the bullish momentum, led by strong UK labor market reports, decisively beyond 1.4200 handle and is currently trading at 1.4190, off session peak level of 1.4215.Earlier during Asian session, the pair managed to stage a swift recovery from sub-1.4100 handle (fresh monthly low) and got a further boost from UK jobs report, especially from strong Average Earning growth of 2.0%. The bullish momentum stalled above 1.4200 handle following the release of upbeat US Empire State Manufacturing Index and PPI data. The pair regained its bullish momentum on slight disappointment from US Capacity Utilization Rate and Industrial Production data. Next in focus would be the key FOMC decision and economic projections ahead of BoE monetary policy decision tomorrow. Investors this week have to deal with a busy economic calendar, primarily focused on central bank meetings, which could trigger substantial volatility in the forex market.Meanwhile, looming UK-EU referendum on June 23, popularly known as 'Brexit' remains key fundamental overhang on the British Pound and hence, might restraint the GBP/USD pair to register a strong up-move in the near-term.Technical outlookValeria Bednarik, Chief Analyst at FXStreet notes, "the 4 hours chart shows that the price stalled after testing a sharply bearish 20 SMA, but holds nearby, whilst the Momentum indicator heads sharply higher and is aiming to cross the 100 level towards the upside, whilst the RSI indicator recovered from oversold readings, and heads north below its mid-line.""Given the lack of volatility ahead of the FED's decision, the pair is likely now to consolidate around the current levels. Bad news coming from the US Central Bank can trigger a stepper recovery, with gains beyond 1.4250 favoring an advance up to 1.4310. Nevertheless, Brexit concerns will likely put the pair back under selling pressure once the dust settles, so don't hold on to longs, despite any probable dollar's weakness.""The immediate support comes at 1.4140, with a break below it exposing the mentioned weekly low of 1.4090, en route to 1.4050."

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