Dollar pairs are off to a rangebound start for the week, but it looks like Cable is breaking down from a reversal pattern.
Can GBP/USD sustain its slide?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
White House official says that debt ceiling negotiations will resume early this week, although House Speaker McCarthy says talks have “moved backwards” over the weekend
People’s Bank of China kept yuan reference rate and prime loan rates unchanged, pledged to keep market stable despite currency fluctuations
U.K. Rightmove HPI shows 1.8% month-over-month gain in house prices in May, reflecting increased confidence in the market, following earlier 0.2% uptick
Japanese core machinery orders down 3.8% month-over-month in March, marking back-to-back declines after earlier 4.5% slump
Price Action News
Most forex pairs are off to a lazy start for the week, likely due to the lack of top-tier market releases early on.
The dollar is attempting to rake in some gains against the Aussie, pound, and euro so far, although there are no clear catalysts for the moves in the latest trading sessions.
Word in the White House is that debt ceiling negotiations have already resumed, but Speaker McCarthy noted that talks have “moved backwards” in President Biden’s absence over the weekend.
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone consumer confidence index at 2:00 pm GMT
Australia’s flash manufacturing and services PMIs at 11:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
Is that a small double top I’m seeing on the short-term chart of Cable?The pair has already dipped below the neckline support right around the pivot point (1.2440) and might be in for a drop that’s the same height as the formation.
Either that or GBP/USD could set its sights on the next support level at S1 (1.2390) near the previous day lows.
Sustained selling pressure might even take the pair all the way down to S2 (1.2350) which is a minor psychological level.
On the other hand, a return in bullish vibes possibly on more signs of disagreement during U.S. debt ceiling talks might mean fresh downside for the dollar. This could take GBP/USD back up to the tops around 1.2470 or the next upside barrier at R1 (1.2480).