GBPUSD dips back below the 100/200 hour MAs

The GBPUSD GBP/USD The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a Read this Term is dipping back below the converged 100/2000 hour MAs at 1.23716.

The price has been skimming along those moving averages in trading today only to bounce back higher. The break in the current bar is showing more downside momentum.

On the downside the prices approaching a trend line at 1.2351. Below that and the lows from Thursday and Friday cut across near 1.2342. Each represent the next downside targets.

Move below those levels should open up the door for further downside momentum as traders become more comfortable with the bias shift in the downward direction.

Taking a broader look at the daily chart below, the index high this month reached 1.2447 last Monday. That was just a PIP or two higher than the swing high from December at 1.24458. The inability to move above that level has helped to put a lid on the pair.

On the downside, traders will be watching the 50% midpoint of the range since the early June 2021 high. That level comes in at the natural support at 1.2300. That level comes between a swing area from 1.2278 up to 1.2343.

This week both the Fed and the Bank of England Bank of England The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy The Bank of England (BoE) functions as the United Kingdom’s central bank and is one of the key drivers of monetary policy in Europe. As one of the world’s oldest central banks and established in 1694, the BoE is owned by the British government. Its central mandate involves maintaining and targeting interest rates while using other tools to help either stimulate or contract the economy. Moreover, the BoE is responsible for producing the UK’s bank notes as well as supervising key bank payment sy Read this Term will announce new interest-rate decisions. The Federal Reserve is expected to increase rates by 25 basis points. The Bank of England is expected to increase rates by 50 basis points. In the UK, inflation remains skyhigh with the headline CPI still comfortably above 10% (at 10.5%). The trend in the US inflation is more favorable to the downside (at least the headline inflation rate). However, the service and ex-food and energy inflation numbers remain elevated which should keep the federal reserve on the defensive.