Home Forex GBP/USD has been trading in positive territory for two consecutive days

GBP/USD has been trading in positive territory for two consecutive days

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GBP/USD Price Analysis: Holding below 1.2700, with a cross eye

The GBP/USD pair is gaining ground below the 1.2700 level during Thursday’s early European session. The major pair is trading in positive territory for the second day in a row as traders hedged their bets on an early interest rate cut by the Bank of England (BoE). GBP/USD is currently trading near 1.2682, down 0.01% on the day.

From a technical perspective, GBP/USD’s bearish outlook remains intact as the pair remains below the 50- and 100-hour exponential moving averages (EMA) on the 4-hour chart. It is worth noting that the 50-hour EMA is on the verge of breaking below the 100-hour EMA. If a decisive crossover occurs on the 4-hour chart, it would confirm a bearish cross, highlighting that the path of least resistance for GBP/USD is to the downside. Read more…

GBP/USD trades with slight upside bias just below 1.2700, lacks bullish conviction

The GBP/USD the pair attracted some buyers for the second day in a row on Wednesday and looks set to build on the previous day’s good bounce from levels below 1.2600 or above the one-month low. Spot prices are currently trading just below the round figure of 1.2700 and remain well supported by reduced bets on an early interest rate cut by the Bank of England (BoE).

The British Office for National Statistics (ONS) said on Wednesday that the consumer Price index (CPI) rose for the first time in 10 months to 4.0% in December from a more than two-year low of 3.9% the previous month. Added to that, the core gauge, which excludes volatile food, energy, alcohol and tobacco prices, was unchanged at 5.1% in December, compared with an expected decline to 4.9%. Markets reacted quickly and now have a roughly 60% chance that the BoE will start cutting rates by mid-May, down from 80% late on Tuesday, which in turn is seen as a base for the British pound (GBP). Read more…

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