Alexia greets everyone!
Currently, the GBP/USD pair is trading with a negative trend for the second consecutive day on Tuesday and is retreating further from its highest level since mid-September, around the 1.2425-1.2430 area touched the previous day, declining less than 0.10% on the day, although lacking further selling pressure.
In market news:
The US Dollar (USD) is believed to be forming a recovery move from nearly an 8-week low overnight and turned out to be the main factor weighing on the GBP/USD pair. Despite expectations that the Federal Reserve (Fed) has completed its rate hike, less hawkish remarks from FOMC members have led to a positive recovery in US Treasury yields on Monday. Furthermore, a slight decrease in global risk sentiment - described by a softer tone surrounding the stock market - reinforces the safe-haven appeal of the greenback.
Therefore, the focus will still be on the influential speeches of FOMC members, including the appearance of Fed Chair Jerome Powell on Wednesday and Thursday. Meanwhile, the sharp decline in US Treasury bond yields may limit any further gains for the US dollar and help mitigate the downside of the GBP/USD pair. In the absence of any significant market-moving economic data from the UK or US, the fundamental backdrop suggests that we should exercise caution and wait for the next strong selling wave before confirming that spot prices have reached a peak.
Personal opinion of ALEXIA:
The GBP/USD pair is expected to continue declining in the near future, with a projected drop to 1.2260 before any significant upward momentum occurs.
Currently, the GBP/USD pair is trading with a negative trend for the second consecutive day on Tuesday and is retreating further from its highest level since mid-September, around the 1.2425-1.2430 area touched the previous day, declining less than 0.10% on the day, although lacking further selling pressure.
In market news:
The US Dollar (USD) is believed to be forming a recovery move from nearly an 8-week low overnight and turned out to be the main factor weighing on the GBP/USD pair. Despite expectations that the Federal Reserve (Fed) has completed its rate hike, less hawkish remarks from FOMC members have led to a positive recovery in US Treasury yields on Monday. Furthermore, a slight decrease in global risk sentiment - described by a softer tone surrounding the stock market - reinforces the safe-haven appeal of the greenback.
Therefore, the focus will still be on the influential speeches of FOMC members, including the appearance of Fed Chair Jerome Powell on Wednesday and Thursday. Meanwhile, the sharp decline in US Treasury bond yields may limit any further gains for the US dollar and help mitigate the downside of the GBP/USD pair. In the absence of any significant market-moving economic data from the UK or US, the fundamental backdrop suggests that we should exercise caution and wait for the next strong selling wave before confirming that spot prices have reached a peak.
Personal opinion of ALEXIA:
The GBP/USD pair is expected to continue declining in the near future, with a projected drop to 1.2260 before any significant upward momentum occurs.
Trade active
