USDJPY
EURUSD
GBPUSD
GBPUSD trades at the highest level since 2021 as the Dollar continues to get beaten
Key Takeaways (30s Read)
GBPUSD reaches its highest level since 2021 as the US dollar weakens significantly.
The US dollar continues to weaken, influenced by risks associated with the USD/JPY intervention. Treasury Secretary Bessent indicated no current intervention plans, providing a brief boost to the dollar which did not last. The Fed held interest rates unchanged, upgrading their economic outlook slightly based on recent data. In contrast, GBP rose sharply following stronger than expected UK Flash PMIs, prompting a hawkish reassessment. Traders should monitor for further reactions as GBP/USD reaches cycle highs.
On the daily chart, GBP/USD has emerged into new cycle highs against the weakening dollar, suggesting potential bullish momentum. Sellers will watch for a retreat below the previous cycle high at 1.3789. In the 4-hour timeframe, prices broke a minor upward trendline, indicating a possible pullback or consolidation ahead, particularly around the 1.3750 support level. Traders should remain alert to further data releases that may impact the dollar's strength.
AI Analyst
AI Opinion
"The current market environment shows GBP/USD reaching heights not seen since 2021 due to the ongoing weakness of the US dollar and positive influences from UK economic indicators. With the Fed not providing any clear guidance, upcoming employment data releases will be especially crucial. Strong results may provide short-term support for the dollar; however, the overall sentiment remains bearish for the dollar, with GBP movements taking precedence. Traders should maintain sound risk management strategies while looking for opportunities to buy on dips, particularly focusing on the movement of support lines as a critical aspect of upcoming trading strategies."
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