GBPUSD MARKET UPDATE :GBP/USD climbs to two-week high, retakes 1.1400 and beyond amid sustained USD selling.



GBP/USD climbs to two-week high, retakes 1.1400 and beyond amid sustained USD selling

  • GBP/USD gains traction for the sixth straight day and climbs to a two-week high.
  • The UK government’s U-turn on scraping higher tax rates continues to lift sterling.
  • The USD extends its recent sharp retracement slide and offers additional support.

GBPUSD MARKET UPDATE :The GBPUSD pair attracts some dip-buying near the 1.1280 region and turns positive for the sixth successive day on Tuesday. The momentum lifts spot prices to a two-week high, back above the 1.1400 mark during the early European session and is sponsored by a combination of factors.

The UK government’s U-turn to reverse a controversial tax cut plan announced in its mini-budget last week continues to underpin the British pound. The US dollar, on the other hand, extends its recent sharp pullback from a two-decade high amid the ongoing downfall in the US Treasury bond yields and offers additional support to the GBP/USD pair.

GBPUSD MARKET UPDATE :The Bank of England reaffirmed its willingness to buy up to £5 billion of long-dated gilts and this helped drag the US Treasury bond yields further away from a multi-year top touched last week. Apart from this, the prevalent risk-on mood – as depicted by a strong rally across the global equity markets – is seen as another factor weighing on the safe-haven buck.

With the latest leg up, the GBP/USD pair confirms a breakout back above a nearly two-month-old descending trend-line resistance. This might have already set the stage for an extension of the recent recovery from an all-time low touched last Monday. In the absence of any macro data from the UK, spot prices remain at the mercy of the USD price dynamics.Confuse Which Broker is best ? , Here you can find the best regulated broker


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