GBP/USD – H4
The Bank of England delivered a back-to-back 25 basis point rate hike on Thursday, with four of the five members of the Monetary Policy Committee, dissenting in favor of a larger 50 basis points hike.
The pair strengthened on the news, but ended its five-day profitable streak on Friday, as better than expected jobs report from the United States, boosted the greenback.
Political tensions continue to simmer in the UK, since PM Johnson actions and the handling of the lockdown parties have generated discontent among Conservatives, casting doubt over his political future.
GBP/USD is on the back foot today, testing its EMA200 and the upper border of the Daily Ichimoku Cloud at around 1.3500. A break below could accelerate the drop towards 1.3412, but sustained decline below mid-1.3300s may prove hard.
As long as bulls hold 1.3500 they have the ability to push for fresh February highs (1.3628), but they don't inspire confidence for further rise towards January's high (1.3749).
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.