GBP/USD Direction Impacted by Market Sent. and Bearish Momentum
In the early European morning, GBP/USD experiences a surge of bullish momentum, propelling it towards the mid-1.2400s. However, the pair encounters significant resistance at the 1.2440 level, which could serve as a springboard for further upward movement once it is confirmed as support.
Despite GBP/USD dipping below 1.2400 for the third consecutive day on Wednesday, it swiftly recovers and reclaims that level, while the US Dollar (USD) struggles to maintain its strength. The recent rebound in the pair appears to be primarily driven by technical factors, as there is a lack of significant fundamental drivers influencing the market.
Later in the day, the US Census Bureau will release the Goods Trade Balance data for April, and the Federal Reserve's Consumer Credit Change data will also be featured in the US economic calendar. However, it is unlikely that market participants will base their trading decisions solely on these figures, given the anticipation surrounding next week's crucial inflation report and the Federal Open Market Committee (FOMC) policy meeting.
Therefore, GBP/USD's movements during the American trading hours are likely to be influenced by market participants' perception of risk and technical developments. From a technical standpoint, we observe that GBP/USD is currently positioned between the 50% and 61.8% Fibonacci levels. This suggests the potential for a pullback and a resumption of the bearish momentum in the pair.
Despite GBP/USD dipping below 1.2400 for the third consecutive day on Wednesday, it swiftly recovers and reclaims that level, while the US Dollar (USD) struggles to maintain its strength. The recent rebound in the pair appears to be primarily driven by technical factors, as there is a lack of significant fundamental drivers influencing the market.
Later in the day, the US Census Bureau will release the Goods Trade Balance data for April, and the Federal Reserve's Consumer Credit Change data will also be featured in the US economic calendar. However, it is unlikely that market participants will base their trading decisions solely on these figures, given the anticipation surrounding next week's crucial inflation report and the Federal Open Market Committee (FOMC) policy meeting.
Therefore, GBP/USD's movements during the American trading hours are likely to be influenced by market participants' perception of risk and technical developments. From a technical standpoint, we observe that GBP/USD is currently positioned between the 50% and 61.8% Fibonacci levels. This suggests the potential for a pullback and a resumption of the bearish momentum in the pair.
