Should Investors Be Wary of Further Downside in GBP/USD, Which Has Posted Six Consecutive Down Days?
28.09.2023
- Remarks by U.S. Federal Reserve Chair Powell
- U.S. GDP Deflator
In the previous day’s U.S. currency trading, the U.S. dollar rose against major currencies after Kashkari, President of the Federal Reserve Bank of Minneapolis, stated that “if the domestic economy remains resilient, one more 25-basis-point rate hike will be necessary.”The USD/JPY pair rose by approximately 80 pips, from 148.854 to 149.706, following an upward trend along the +3σ line of the hourly Bollinger Bands. We must remain vigilant to see if today’s economic data releases during U.S. trading hours will trigger further gains.
Among European currencies, the pound fell against the U.S. dollar for the sixth consecutive day ahead of key speeches scheduled for today. The GBP/USD pair fell from 1.2163 to 1.2110.From a technical perspective, the GBP/USD pair continues its downward trend along the 10-period moving average (MA) on the 4-hour chart, while on the daily chart, the RSI has fallen below the oversold level of 30 to 18.4. Therefore, traders should watch for signs of a potential directional shift—whether a temporary rebound will occur or if a selling climax is on the horizon.
Today’s schedule includes Turkey’s Economic Confidence Index at 16:00, the ECB’s Monthly Report at 17:00, Germany’s Consumer Price Index at 21:00, U.S. Initial Jobless Claims and U.S. Second-Quarter GDP at 21:30,U.S. GDP deflator, at 22:00 remarks by U.S. Chicago Fed President Goolsbee, at 23:00 U.S. pending home sales, at 23:30 U.S. weekly natural gas inventories, at 23:45 remarks by U.K.remarks by MPC member Green; at 24:00, the U.S. Kansas City Fed Manufacturing Activity Index; at 26:00, the U.S. 7-year Treasury auction; and at 29:00, remarks by Fed Chair Powell.We will cautiously monitor the downside potential for GBP/USD, which has posted six consecutive bearish candles.
Author: Keisuke Sakurai
