Keep an eye on GBP/USD price movements as the daily RSI shows a downward trend

Keep an eye on GBP/USD price movements as the daily RSI shows a downward trend

06.02.2024

In the previous day’s U.S. currency trading, Minneapolis Fed President Kashkari stated that “core inflation is making rapid progress toward the Fed’s target,” which fueled expectations of an interest rate cut; however, the market reacted in the opposite direction, and the U.S. dollar rose.The EUR/USD pair fell from 1.0786 to 1.0723. It broke below the daily 200-day EMA, which had been acting as support, with a real body candle.

Among European currencies, the pound was the weakest, with the GBP/USD pair falling for the second consecutive day. The GBP/USD fell from 1.2631 to 1.2518. On the daily chart, the pair fell continuously from the +2σ to the -3σ Bollinger Bands and halted its decline upon touching the 200-day EMA. On the weekly chart, the pair has failed to make a new high and is trending lower, so investors should watch for further weakness in the pound.

Today’s schedule includes UK existing store sales at 9:00, Australian retail sales at 9:30, the Philippine Consumer Price Index at 10:00, the RBA policy rate and statement at 12:30, German manufacturing new orders at 16:00, Taiwan’s Consumer Price Index at 17:00, and the UKConstruction PMI, 7:00 PM for Eurozone Retail Sales, 10:30 PM for Canadian Housing Starts, 12:00 AM for the Canadian Ivey PMI, 2:00 AM for remarks by Mester, President of the Cleveland Fed, and 3:00 AM for the U.S. 3-Year Treasury Auction. We will be closely monitoring the price action of GBP/USD, as the daily RSI is showing a downward trend.

Past Market Reports

1. 17.04.2026New

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

2. 16.04.2026New

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

3. 15.04.2026New

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

4. 14.04.2026New

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

5. 13.04.2026New

   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

6. 10.04.2026

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

7. 09.04.2026

   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?

8. 08.04.2026

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

9. 07.04.2026

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

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed