- Analytics
- News and Tools
- Market News
- GBP/USD leans bullish towards 1.2200 on upbeat options market signals, BOE eyed
GBP/USD leans bullish towards 1.2200 on upbeat options market signals, BOE eyed
GBP/USD holds onto the post-Fed gains while picking up bids towards the recent peak surrounding 1.2200, close to 1.2185 by the press time of Thursday’s Asian session.
In addition to the broad US dollar weakness after the US Federal Reserve’s (Fed) action, options market signals also back the cable pair’s latest strength.
That said, a one-month risk reversal (RR) of the GBP/USD pair, a spread between the calls and the puts, jumps the most in five weeks by the end of Wednesday’s North American session, with the latest RR figure being +0.265. In doing so, the options market signal snap the previous three-day downtrend.
It’s worth noting, however, that the weekly scenario remains in favor of the GBP/USD bears as the week-on-week RR prints a three-week downtrend while also flashing the most negative figures since late April, around -0.620 by the press time.
Given the short-term bullish bias for the GBP/USD pair, in contrast to a bit broader bearish forecasts, the traders may wait for the Bank of England’s (BOE) monetary policy decision for taking fresh positions.
Read: BOE Preview: Why GBP/USD set to suffer even in response to a 50 bps hike, a lose-lose event
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
