GBP/USD Surges As Dovish Fed Comments Weaken U.S. Dollar
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GBP/USD rallies sharply for the fourth straight day as the Greenback tumbles following dovish remarks by US Federal Reserve officials, suggesting a deceleration in inflation would warrant lower rates. After those words, the major has printed a leg-up and trades above the 1.2700 figure, posting more than 0.60% gains.
GBP/USD climbs above 1.2700 as it gains momentum following Fed’s dovish remarks
Recently, Fed Governor Christopher Waller, a hawkish member of the Federal Open Market Committee (FOMC), suggested that if inflation consistently declined, there was no reason to keep rates higher. That sent the S&P 500 rallying, while the US Dollar Index (DXY) plunged more than 0.50%, extending its losses toward the 102.63 area.
On the contrary, Fed’s Governor Michelle Bowman said the central bank would need to raise rates higher if the disinflation process stalls.
Before Wall Street opened, the Federal Housing Finance Agency (FHFA) revealed that home prices expanded 6.1% YoY in September. Recently, the Conference Board released November’s figures, which came at 12, exceeding forecasts of 101, and October’s downward revised number to 99.1.
Meanwhile, the Bank of England Deputy Governor Dave Ramsden commented on Tuesday that monetary policy must remain restrictive to curb inflation, pushing against market participants' expectations that BoE would slash rates next year.
GBP/USD Price Analysis: Technical outlook
The GBP/USD extended its gains to a three-month high, with buyers eyeing a test of the August 30 swing high at 1.2746, which, once cleared, could pave the way for GBP bulls to challenge the 1.2800 mark. On the flip side, if sellers drag the spot price below 1.2700, they could remain hopeful of lower prices, though they must reclaim the 1.2600 figure, ahead of 1.2550.
GBP/USD Technical Levels
GBP/USD
| OVERVIEW | |
|---|---|
| Today last price | 1.2712 |
| Today Daily Change | 0.0082 |
| Today Daily Change % | 0.65 |
| Today daily open | 1.263 |
| TRENDS | |
|---|---|
| Daily SMA20 | 1.2381 |
| Daily SMA50 | 1.2269 |
| Daily SMA100 | 1.2496 |
| Daily SMA200 | 1.2459 |
| LEVELS | |
|---|---|
| Previous Daily High | 1.2644 |
| Previous Daily Low | 1.2591 |
| Previous Weekly High | 1.2616 |
| Previous Weekly Low | 1.2446 |
| Previous Monthly High | 1.2337 |
| Previous Monthly Low | 1.2037 |
| Daily Fibonacci 38.2% | 1.2624 |
| Daily Fibonacci 61.8% | 1.2612 |
| Daily Pivot Point S1 | 1.2599 |
| Daily Pivot Point S2 | 1.2568 |
| Daily Pivot Point S3 | 1.2546 |
| Daily Pivot Point R1 | 1.2652 |
| Daily Pivot Point R2 | 1.2675 |
| Daily Pivot Point R3 | 1.2706 |
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