Forex Technical Analysis

Despite oversold conditions, the GBPUSD pair remains in a steep downtrend, failing to bounce significantly. The Pound was 0.2% weaker against the greenback, changing hands near 1.3230, one-year lows for the pair ahead of the US session.

The bullion declined today, losing 0.3% ahead of the US session as the dollar index increased along with US yields. At the time of writing, gold slipped below 1,780 USD.

The Australian dollar was down four days this week, dropping to fresh one-year lows as it was trading at 0.7050 during the US session, down 0.5% on the day.

Sentiment in the stock market deteriorated notably over the previous days, undermined by the more-than-expected hawkish Powell and the new COVID variant Omicron.

The shared currency continued to be sold against other major currencies, resulting in a decline of the EURJPY cross to the main support level again.

On Tuesday, the dollar dropped sharply as sentiment deteriorated, leading to a decline in both US yields and the US dollar. Ahead of the US session, the EURUSD pair advanced 0.7% and traded near 1.13650.