The GBP/USD pair initially attempted a recovery but later reversed, falling below 1.2100 on Friday due to escalating geopolitical tensions, favoring the US Dollar. The Relative Strength Index (RSI) dropped to 40, signaling a short-term bearish outlook. The crucial level at 1.2200 holds psychological and technical significance. If confirmed as support, GBP/USD could recover to 1.2250 and 1.2300. However, failure to maintain levels above 1.2200 could invite selling pressure, with support identified at 1.2170, 1.2130, and 1.2100. Despite a loss of over 100 pips on Thursday, GBP/USD rebounded on Friday and stabilized above 1.2200.
US Treasury bond yields surged on Thursday following the September inflation report, strengthening the US Dollar. Despite a slight decrease in annual Core Consumer Price Index (CPI) inflation to 4.1%, specific report details revived expectations for a later Federal Reserve rate increase. 'Supercore inflation' increased by 0.6% monthly, highlighting persistent inflation components.
On Friday, the 10-year US T-bond yield corrected lower after a 3% surge on Thursday, making it challenging for the USD to extend recent gains. Meanwhile, US stock index futures registered a slight increase. If US yields continue to decrease in the latter part of the day, the USD may remain weak, allowing GBP/USD to rise before the weekend. Conversely, a cautious opening of Wall Street along with a recovery in US yields could exert downward pressure on the pair. The price is in a demand zone on the H4 chart and might attempt an upward movement with targets at 1.22/1.2250. It will be important to monitor a potential change in structure at M5/M15 during the London session tomorrow for a possible long entry. Let me know your thoughts, comment, and leave a like to support our work. Greetings from Nicola, the CEO of Forex48 Trading Academy.
US Treasury bond yields surged on Thursday following the September inflation report, strengthening the US Dollar. Despite a slight decrease in annual Core Consumer Price Index (CPI) inflation to 4.1%, specific report details revived expectations for a later Federal Reserve rate increase. 'Supercore inflation' increased by 0.6% monthly, highlighting persistent inflation components.
On Friday, the 10-year US T-bond yield corrected lower after a 3% surge on Thursday, making it challenging for the USD to extend recent gains. Meanwhile, US stock index futures registered a slight increase. If US yields continue to decrease in the latter part of the day, the USD may remain weak, allowing GBP/USD to rise before the weekend. Conversely, a cautious opening of Wall Street along with a recovery in US yields could exert downward pressure on the pair. The price is in a demand zone on the H4 chart and might attempt an upward movement with targets at 1.22/1.2250. It will be important to monitor a potential change in structure at M5/M15 during the London session tomorrow for a possible long entry. Let me know your thoughts, comment, and leave a like to support our work. Greetings from Nicola, the CEO of Forex48 Trading Academy.
📈 Nicola | EdgeTradingJourney
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📈 Nicola | EdgeTradingJourney
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Documenting my path to $1M in prop capital through real trading, discipline, and analysis.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.