(VIANEWS) – Some dip-buying is seen near the USD/GBP pair and it reaches a new daily high in the first part of the European session. Spot prices rise to the mid-1.1500s during the intraday and are supported by some selling of the US dollars.

FXStreet reports that the dollar failed to capitalize on yesterday’s post-US CPI rise by registering a slight downturn in US Treasury bond yields. Besides this, stability in financial markets continues to undermine the safe-haven dollar. These factors help offset the softening of UK consumer inflation and are a major factor in pushing GBP/USD higher. However, it seems that any significant upside is still elusive. This suggests that the intraday rise could be stifled rather quickly.

GBP/USD (GBPUSD) is currently on bearish momentum. At 04:06 EST on Friday, 16 September, GBP/USD (GBPUSD) is at 1.1379, 0.7692% down since the last session’s close.

The GBP/USD pair attracts some dip-buying near the 1.1480 region and hits a fresh daily high during the early part of the European session. The intraday positive move lifts spot prices to the mid-1.1500s and is sponsored by the emergence of some US dollar selling.

FXStreet reported that a modest downtick in the US Treasury bond yields fails to assist the buck to capitalize on the previous day’s post-US CPI rally. Apart from this, signs of stability in the financial markets further undermine the safe-haven greenback. This helps offset softer UK consumer inflation figures and turns out to be a key factor pushing the GBP/USD pair higher. That said, any meaningful upside still seems elusive, suggesting the intraday ascent runs the risk of fizzling out rather quickly.

Why is GBP/USD Currency Going Down?

The GBP/USD currency pair is on a downward trajectory. Traders believe that the UK’s record high inflation expectations and increasing confidence in the BOE are the main reasons for the downturn.

The GBP/USD currency pair is made up of two fundamental components: the bid price and the ask price. The bid price is the current value of the GBP/USD currency pair, while the ask price is the price that will be traded at a future date. A currency pair is defined by its bid and ask prices, which are measured in pip units. Each pip represents 0.0001 of the quoted price. The difference between the bid and ask price is called the spread. The spread is typically less than one pip. Trading robots also use the last digit of a quote to ensure precision pricing.

The GBP/USD currency pair is under pressure after rallying earlier this week. On Tuesday, US inflation data came in hotter than expected, and the dollar gained across the board. As of Thursday, the dollar has held on to most of its gains. The UK has little data to report this week, but the Bank of England will decide on interest rates on Thursday. Additionally, the UK will be releasing a mini-budget.

GBP/USD (GBPUSD) Range

Concerning GBP/USD’s daily highs and lows, it’s 0.689% down from its trailing 24 hours low of $1.15 and 0.767% down from its trailing 24 hours high of $1.15.

GBP/USD’s yearly highs and lows, it’s 0.229% up from its 52-week low and 17.746% down from its 52-week high.

Volatility

GBP/USD’s last week, last month’s, and last quarter’s current intraday variation average was a negative 0.17%, a negative 0.24%, and a positive 0.49%, respectively.

GBP/USD’s highest amplitude of average volatility was 0.83% (last week), 0.55% (last month), and 0.49% (last quarter), respectively.

Forex Price Classification

According to the stochastic oscillator, a useful indicator of overbought and oversold conditions, GBP/USD’s Forex is considered to be overbought (>=80).

Previous days news about GBP/USD (GBPUSD)

  • Gbp/usd steadily climbs to mid-1.1500s, fresh daily high amid modest USD weakness. According to FXStreet on Wednesday, 14 September, “This helps offset softer UK consumer inflation figures and turns out to be a key factor pushing the GBP/USD pair higher. “, “The GBP/USD pair attracts some dip-buying near the 1.1480 region and hits a fresh daily high during the early part of the European session. “
  • Gbp/usd keeps the red near weekly low, moves little post-us economic data. According to FXStreet on Thursday, 15 September, “This, in turn, remains supportive of elevated US Treasury bond yields and favours the USD bulls, suggesting that the path of least resistance for the GBP/USD pair is to the downside. “, “Following the previous day’s modest downtick, the US dollar regains some positive traction on Thursday amid hawkish Fed expectations and turns out to be a key factor exerting pressure on the GBP/USD pair. “
  • Gbp/usd forex signal: bears in control ahead of UK inflation data – 14 September 2022. According to DailyForex on Wednesday, 14 September, “The GBP/USD price erased gains made earlier this week after the strong US inflation and UK jobs data. “, “The four-hour chart shows that the GBP/USD pair has been in a strong bearish trend in the past few weeks. “
  • Gbp/usd faces barricades around 1.1500, focus is on US retail sales. According to FXStreet on Thursday, 15 September, “The GBP/USD pair is inching modestly towards the upside after a rebound from 1.1526 in the late New York session. “
  • Gbp/usd remains on the defensive amid modest USD uptick, eyes US data for fresh impetus. According to FXStreet on Thursday, 15 September, “The GBP/USD pair struggles to capitalize on the previous day’s modest uptick and meets with a fresh supply on Thursday. “, “Apart from this, prospects for a 75 bps rate hike by the Bank of England on September 22 offer support to the GBP/USD pair.”

More news about GBP/USD (GBPUSD).

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