GBP/USD may rebound above the nine-day EMA

GBP/USD Price Forecast: Tests 1.3450 support after moving below nine-day EMA

GBP/USD remains subdued for the second consecutive day, trading around 1.3460 during the Asian hours on Wednesday. The technical analysis of the daily chart indicates a weakening of a bullish bias as the pair is positioned slightly below the lower boundary of the ascending channel pattern.

The nine-day Exponential Moving Average (EMA) trends above the 50-day EMA, preserving a bullish bias. The GBP/USD pair hovers just beneath the short-term average while holding well above the rising medium-term average, signaling ongoing trend support. Additionally, the 14-day Relative Strength Index (RSI) at 61.0 stays positive and is not overbought. Read more…

GBP/USD trades flat above 1.3450 amid thin trading volume

The GBP/USD pair holds steady around 1.3465 during the early Asian trading hours on Wednesday. However, the Bank of England (BoE) guided that monetary policy will remain on a gradual downward path, which might underpin the Cable against the US Dollar (USD). Financial markets are expected to trade on thin volumes as traders prepare for the New Year holiday.

The Bank of England (BoE) cut interest rates from 4.0% to 3.75% at its December policy meeting, the lowest level in nearly three years. Governor Andrew Bailey said during the press conference that rates are likely to continue on a gradual downward path, but “how much further we go becomes a closer call” with each cut. Money markets believe the UK central bank will deliver at least one rate reduction in the first half of the year and are pricing in nearly a 50% chance of a second before the year-end, according to Reuters. Read more…

GBP/USD trades flat as Fed Minutes loom, BoE signals cautious easing

GBP/USD trades around 1.3460 on Tuesday at the time of writing, down 0.30% on the day. The pair consolidates after failing to sustain the bullish momentum seen last week, which had lifted it to a more than three-month high near 1.3535. This pause reflects lingering hesitation in the US Dollar (USD), as market participants remain cautious ahead of the release of the Minutes from the latest Federal Open Market Committee (FOMC) meeting.

The US Dollar trades without a clear trend, with the US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, holding steady around 98.10. Markets are looking for more detailed insight into internal discussions at the Federal Reserve (Fed) regarding the monetary policy outlook. At its latest meeting, the Fed delivered its third consecutive rate cut of the year, lowering the Federal Funds target range to 3.50%-3.75%. Updated economic projections, including the dot plot, now point to a policy rate near 3.4% by 2026, suggesting only one additional rate cut next year. Read more…