Gbpusd Closes Another Day Higher

last updated on

Gbpusd Closes Another Day Higher

Gbp/Usd Closes Its Seventh Day In Green

Powell's comments have made the prospects of a September rate cut into a reality. As a result of this, the US Dollar is on the back foot against most currencies, including the GBP.

That's why the GBP/USD has just closed its 7th day in green, making it a really impressive rally against the US Dollar. If we look at the FedWatch tool, the upcoming rate cut is now almost confirmed. Most of the people think that the rate cut will be around 25 bps.

Powell Believes Time Is Right For Rate Cuts

Some are also hinting at an even larger rate cut, but this forecast has no basis, as Powell has only talked about how the timing is right.

On the upcoming Monday, there will be a bank holiday in the UK. Similarly, the rest of the week also lacks any major data as well. However, the US side will be important to watch as the PCE and the US GDP will be released.

It is safe to say that the price action of this week was mostly one-sided in favor of the GBP. Overall, GBP/USD moved higher by 2.1% during the week and recovered from its lows near 1.2665.

In the process of closing the 7th day in green, GBP/USD has also refreshed its 29-month highs. If we look at the lows from Q3 2022, the pair is now almost up by 28%, which is quite impressive.

What's even more impressive is that GBP/USD is not showing any signs of slowing down as well. While this bull run seems exciting, it also warrants some caution. After all, we can't rule out the possibility of a technical correction at this stage.

Even if the correction is not that deep, it is expected to happen anyway in the GBP/USD pair. With the US central bank only a few weeks away from its first rate cut in several years, we expect some high volatility in GBP/USD.

Trending Stories