GBPUSD Market Analysis – October-09-2023
In our latest GBPUSD market analysis, we see that the currency pair is struggling in a market that’s cautious about taking risks. Despite a slight recovery last week, the GBPUSD currency pair started this week on a weak note, falling below 1.2200.
GBPUSD Fundamental Analysis
Reuters – Recent events have stirred up the market. Over 1,100 lives have been lost due to conflicts in the Gaza Strip, where militants have taken hostages. This has led to an increase in the value of the US Dollar (USD), as investors seek safer options. The USD Index rose above 106.50, gaining 0.4% after a three-day decline last week.
Today’s market analysis shows that the Pound Sterling is performing poorly against major currencies, particularly the New Zealand Dollar. While US bond markets are closed for Columbus Day, stock markets are open as usual. Any changes in Wall Street’s main indexes could affect the USD’s value. If US stocks perform poorly, it could boost the USD’s strength.
In other news, Federal Reserve Governor Michelle Bowman stated that tighter monetary policy may be needed to bring inflation back to a 2% target. This suggests that investors will be closely watching risk perception, as no major data releases are expected in the US economic docket.
GBPUSD Technical Analysis
The GBPUSD pair is currently at a critical juncture. The pair is testing the 1.217 pivot point on the 4-hour chart, a key level that traders around the globe are closely monitoring. The Relative Strength Index (RSI), a popular momentum indicator, is teetering on the edge of the 50 level, adding to the suspense.
The market sentiment for GBPUSD appears to be bearish at this moment. If the bears manage to close below the pivot point on the 4-hour chart, it could signal a potential downtrend for the pair. In such a scenario, we could see GBPUSD embark on a downward journey, with its sights set on the 1.029 support level.
However, every market has two sides, and it’s important to consider both perspectives in our GBPUSD market analysis. On the bullish side of things, there’s still hope. To maintain the upward momentum that started on October 3rd, bulls need to push the currency pair above the middle line of the declining channel.
In conclusion, whether you’re a bull or a bear, keeping an eye on these key levels and indicators could provide valuable insights into future price movements of GBPUSD. Remember, in forex trading, staying informed is key to success.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.