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GBPUSD retraces lower on stronger dollar


GBPUSD starts to fall again today

the GBPUSD

GBP/USD

The GBP/USD is the currency pair comprising the currency of the United Kingdom, the British pound sterling (symbol £, code GBP) and the dollar of the United States of America (symbol $, code USD). The pair rate indicates how many US dollars are needed to buy one British pound. For example, when GBP/USD is trading at 1.5000, it means that 1 pound equals 1.5 dollars. GBP/USD is the fourth most traded currency pair in the forex market, giving it abundant liquidity and a low spread. While currency pair spreads vary from broker to broker, generally speaking, GBP/USD often stays within the 1 pip to 3 pip spread range, making it a good candidate for scalping. GBP/USD, also known as the “cable” (due to the transatlantic cables used to telegraph its exchange rate in the 19th century) has a positive correlation with EUR/USD and a negative correlation with EUR/USD. ‘USD/CHF. Trading GBP/USD While many traders and even brokers will argue that the best time to trade GBP/USD is during its busiest hours in London and New York, this can be a double edged sword due to the unpredictability of the couple. Its volatility also fluctuates often, and so what might be a profitable strategy one month, may not be as productive the following months. Additionally, purely technical traders can really struggle to be consistent with this pair (i.e. ignoring the fundamentals), due to the unique political nature of the UK. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a soft resolution not expected in the foreseeable future, it is clear that GBP/USD will be influenced by any development and trading with the European Union.

The GBP/USD is the currency pair comprising the currency of the United Kingdom, the British pound sterling (symbol £, code GBP) and the dollar of the United States of America (symbol $, code USD). The pair rate indicates how many US dollars are needed to buy one British pound. For example, when GBP/USD is trading at 1.5000, it means that 1 pound equals 1.5 dollars. GBP/USD is the fourth most traded currency pair in the forex market, giving it abundant liquidity and a low spread. While currency pair spreads vary from broker to broker, generally speaking, GBP/USD often stays within the 1 pip to 3 pip spread range, making it a good candidate for scalping. GBP/USD, also known as the “cable” (due to the transatlantic cables used to telegraph its exchange rate in the 19th century) has a positive correlation with EUR/USD and a negative correlation with EUR/USD. ‘USD/CHF. Trading GBP/USD While many traders and even brokers will argue that the best time to trade GBP/USD is during its busiest hours in London and New York, this can be a double edged sword due to the unpredictability of the couple. Its volatility also fluctuates often, and so what might be a profitable strategy one month, may not be as productive the following months. Additionally, purely technical traders can really struggle to be consistent with this pair (i.e. ignoring the fundamentals), due to the unique political nature of the UK. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a soft resolution not expected in the foreseeable future, it is clear that GBP/USD will be influenced by any development and trading with the European Union.
Read this term follows the upward trend of the USD. US yields pushed higher with the two-year now up eight basis points to 2.435%, and the 10-year up 7.7 basis points to 2.781%. It is well off the day’s lows at 2.301% and 2.648% respectively. Yields rising and pushed gold

Gold

Gold is the most traded and most important commodity. Prized for its historical significance and used to trade goods, the gold market today is estimated at nearly $2.4 trillion. The value of gold fluctuates constantly, as it trades on public exchanges where its price is determined by supply and demand. . Gold has historically had considerable importance and even today it is highly sought after. Gold has been used as currency because it does not corrode, and the material allows some absorption of light creating a yellow glow, hence the name yellow metal. Ultimately, institutional and retail investors buy and sell gold contracts or physical gold, creating the flow of demand and supply. It can be pure speculation, to acquire or distribute physical gold, or as a hedge for a trading application. For day traders, the goal of trading gold is to profit from its daily price movements. It should be noted that physical gold is not actually handled or taken, but transactions take place electronically and only profits or losses are reflected in the trading account. There are several ways to ultimately trade gold. Retail brokers typically offer exposure to gold through contracts for difference (CFDs). Beyond retail brokers, the primary way to trade gold is through a futures contract. It represents an agreement to buy or sell something, i.e. gold at a later date. Buying a gold futures contract does not mean that you actually have to take possession of the physical commodity. sold to. However, on a futures exchange, gold moves in increments of only $0.10. This increment is known as the tick. This is the smallest movement a futures contract can make. If you buy or sell a futures contract, the number of ticks the price moves away from your entry price determines your profit or loss.

Gold is the most traded and most important commodity. Prized for its historical significance and used to trade goods, the gold market today is estimated at nearly $2.4 trillion. The value of gold fluctuates constantly, as it trades on public exchanges where its price is determined by supply and demand. . Gold has historically had considerable importance and even today it is highly sought after. Gold has been used as currency because it does not corrode, and the material allows some absorption of light creating a yellow glow, hence the name yellow metal. Ultimately, institutional and retail investors buy and sell gold contracts or physical gold, creating the flow of demand and supply. It can be pure speculation, to acquire or distribute physical gold, or as a hedge for a trading application. For day traders, the goal of trading gold is to profit from its daily price movements. It should be noted that physical gold is not actually handled or taken, but transactions take place electronically and only profits or losses are reflected in the trading account. There are several ways to ultimately trade gold. Retail brokers typically offer exposure to gold through contracts for difference (CFDs). Beyond retail brokers, the primary way to trade gold is through a futures contract. It represents an agreement to buy or sell something, i.e. gold at a later date. Buying a gold futures contract does not mean that you actually have to take possession of the physical commodity. sold to. However, on a futures exchange, gold moves in increments of only $0.10. This increment is known as the tick. This is the smallest movement a futures contract can make. If you buy or sell a futures contract, the number of ticks the price moves away from your entry price determines your profit or loss.
Read this term down almost $10 or -0.5%. US stocks also fell with the NASDAQ index down almost -1% on the day.

Looking at the GBPUSD hourly chart, the pair is back below its 200 hourly moving average at 1.30636. The price also briefly broke below its 100 hourly moving average at 1.30406, but has since moved just above that level. The low of the day hit 1.30324. There is some stalling around the 100 hourly moving average as sellers and buyers ponder the next move.

Yesterday, the pair traded sharply higher and in doing so broke above the 100 and 200 hourly moving averages with momentum. This led to increased buying in today’s Asian session, with the price crossing above the midpoint of 50% of the decline from the most recent high on April 23rd. This level stood at 1.31343. However, the price was unable to approach the March 31st and April 5th swing highs near 1.31689. The highest price reached 1.30465.

EURUSD declines on a less hawkish ECB, and very strong US retail sales data has started to push up US yields and the USD in the process.

After that ?

The trading range for most of Friday through yesterday’s New York session saw GBPUSD trading between 1.2971 and then 1.30566. The pair has re-entered this range (see the red box in the chart above).

It should be noted in recent price action that the high price – since hitting the 100 hourly moving average – has been limited to 1.3053 – just below the top of this trading range (see red box ). If price can stay below that upper extreme of the red box at 1.30566 (and the 200 hourly MA), the downside is favored again.

The choppy price action in the red box earlier this week could lead to choppier price action as the pair declines.

Keep an eye out for 1.30168, 1.3000 and 1.29818 ahead of yesterday’s trade low at 1.29714, short-term hints of another trip down. I know there are a lot of levels quite close to each other, but they would help set the roadmap and goals on the way down.

Alternatively, if price were to start breaking out of the red box on the upside at 1.30566, and extend above the 200 hourly moving average at 1.30636, sellers tried but failed on the move. momentum towards the hourly moving mean levels. The sellers could easily revert to the buyers and push the price back towards the 38.2% retracement at 1.30958 if failure occurs.

I know one day could be positive the next day negative and the next day choppy up and down, but overall the technical levels formed a roadmap for strength yesterday, and reversed that roadmap today. today with the bears / regaining more control after upside targets failed and/or could not be reached.


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