GBP/USD Start the Week With Caution
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).
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.