GBP/USD sank for a fifth straight session on Wednesday, falling as the US Dollar (USD) catches a broad-market bid after the Federal Reserve (Fed) held rates steady and stuck to its stubborn wait-and-see stance, trimming hopes for a September rate cut.
Gold appears to have entered a consolidation phase following a period of heavy selling. With CTAs now skewed toward buying, ETF outflows reversing, and macro funds still short, the market setup favors a renewed uptrend in the near term, TDS' Senior Commodity Strategist Daniel Ghali notes.
The current price movements are likely part of a 147.85/148.75 consolidation phase. In the longer run, price action indicates that USD could rise toward 149.20, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.