Should investors be wary of further downside potential in GBP/USD, which has posted six consecutive bearish candles?

Should investors be wary of further downside potential in GBP/USD, which has posted six consecutive bearish candles?

28.09.2023

In yesterday’s U.S. currency markets, the U.S. dollar rose against major currencies after Neel 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 U.S. economic data releases 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.GBP/USD fell from 1.2163 to 1.2110. Technically, GBP/USD 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, we should watch for signs of a potential temporary rebound or a selling climax to gauge the market’s direction.

Today’s schedule includes: Turkey’s Economic Confidence Index at 4:00 PM, the ECB’s Monthly Report at 5:00 PM, Germany’s Consumer Price Index at 9:00 PM, U.S. Initial Jobless Claims, U.S. Q2 GDP, and the U.S. GDP Deflator at 9:30 PM, remarks by Charles Goolsbee, President of the Chicago Fed, at 10:00 PM,at 11:00 PM: U.S. Pending Home Sales; at 11:30 PM: U.S. Weekly Natural Gas Inventories; at 11:45 PM: Remarks by MPC Member Green (UK); at 12:00 AM: U.S. Kansas City Fed Manufacturing Activity Index; at 2:00 AM: U.S. 7-Year Treasury Auction; and at 3:00 AM: Remarks by Fed Chair Powell (U.S.).We will closely monitor the downside potential for GBP/USD, which has posted six consecutive bearish candles.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran