GBP / USD saw a sudden drop in volatility in April and was seen to continue trading mostly sideways at the start of Wednesday. “data-reactid =” 12 “> GBP / USD saw a sudden drop in volatility in April and was seen continuing to trade mostly sideways earlier today.
The pair saw purchases yesterday as the dollar lost much ground against its major counterparts. The greenback recently followed an inverse relationship with the stock markets and was weighed by a rebound in the stock markets.
Market players seem to be more confident that a fund is planned for the stock markets, at least temporarily. Yesterday, the S&P 500 hit a new three-week high before it cut much of the gain.
Prime Minister Boris Johnson spent a second night in the hospital. Johnson was admitted to intensive care yesterday when it was announced that Foreign Minister Dominic Raab would replace Johnson.
The economic calendar for the coming session is relatively light. The Federal Reserve is expected to publish the minutes of its last FOMC meeting.
The dollar is expected to continue to queue in the face of risk sentiment, although commodity currencies appear to benefit the most from the weak dollar seen at the start of the week. The British pound seems less sensitive to fluctuations depending on the risk appetite in this context.
GBP / USD continues to trade in a downtrend channel. Given the general lack of momentum, this could very well turn out to be an uptrend. “Data-reactid =” 30 “> The GBP / USD continues to trade in a downtrend channel. Given the general lack of momentum, this could very well prove to be a bull flag pattern.
The stock market tested the upper limit of the channel yesterday and, therefore, a breach above yesterday’s high would tend to bring into play the pattern that would signal a bullish pursuit.
Additional resistance for the pair is found at 1.2476 for the upcoming session, although if the bullish flag pattern is enabled, the hurdle shouldn’t hold sellers too long.
In the next session, support is found at 1.2250. If the pair fails to hold above, the next bearish interest level is at 1.2130, which is currently near the bottom of the channel.
- GBP / USD remains in a range. Volatility is expected to increase after a range cut.
- The Federal Reserve is expected to release the minutes of its last meeting later today.
article was originally published on FX Empire “data-reactid =” 38 “> This article was originally published on FX Empire