Sterling (GBP) Price Rallies Against the US Dollar Ahead of FOMC Decision
Sterling (GBP) Price, News and Latest Analysis
- GBPUSD breaks the downtrend and may push further ahead.
- All eyes on the Federal Reserve and Chair Powell’s post-decision commentary.
GBPUSD Price and Chart
Sterling continues yesterday’s push higher across a range of currencies and is nearly one-and-a-half cents higher against the US dollar and at a one-week high. The greenback has drifted lower ahead of tonight’s FOMC meeting with the market expecting that Fed Chair Jerome Powell’s post-decision commentary may have a decidedly dovish tone.
Sterling has been given a small boost in early trade on news reports that UK PM Theresa May is increasingly likely to cede ground to some of Labour’s demands in cross-party talks in a renewed effort to push Brexit through.
The daily chart shows that the downtrend off the March 13 high was broken and closed above yesterday, a bullish technical signal. Further positive sentiment could see GBPUSD stair-stepping higher to 1.3135 before the 38.2% Fibonacci retracement at 1.3177 comes into view. For the chart to turn bullish, the March 13 high at 1.3383 and the Fibonacci 50% level at 1.3406 need to be broken and closed above.
In the case of a turn lower, 1.2990 and 1.2960 should be closely watched – the downtrend and support line of the descending wedge – ahead of 1.2894, the 23.6% Fibonacci level.
GBPUSD Daily Price Chart (July 2018 – May 1, 2019)
Retail traders are 59.0% net-long GBPUSD according to the latest IG Client Sentiment Data. See how recent daily and weekly positional changes affect GBPUSD and currently give us a positive bias for GBPUSD.
What is your view on Sterling (GBP) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at email@example.com via Twitter @nickcawley1.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.