Technical Analysis
EUR/USD Poised for a Potential Decline Amid Fed Expectations
GBP/USD Rises as Fed Cut Expectations Boost Sterling, UK CPI Data in Focus
GBP/USD surged to a new 2024 high of 1.3129 on Thursday, driven by stronger-than-expected UK flash PMI data for August.
The EUR/USD pair traded close to flat on Wednesday, maintaining its position near a 13-month high as the broader uptrend took a pause.
The GBP/USD currency pair climbed to a new 2024 high of 1.3054 during Tuesday's session as traders capitalized on the continued weakness in the U.S. dollar ahead of the highly anticipated Jackson Hole symposium.
At the beginning of the week, the USD/JPY pair encountered substantial volatility, dropping by around 1.7% during the Asia-Pacific session, briefly breaking below the key support level of 146.00 to hit a low of 145.20.
EUR/USD's outlook remains cautiously bullish. The pair continues to trade above a trend line originating from the 2023 high, and the rising Relative Strength Index (RSI) suggests that upward momentum could persist.
From a technical standpoint, GBP/USD is currently supported at the 1.2782 level, which corresponds to the top of the daily Ichimoku cloud, with additional support found near Thursday’s low of 1.2798.
EUR/USD surged to a 7-month high on Wednesday as bullish momentum persisted following the release of U.S. CPI data, which sparked renewed debate over the Fed's potential rate cuts in September.