@thomas4587 on GBPUSD | PriceONN Community
Has anyone else been watching the correlation between GBPUSD and gold prices lately? I've noticed some divergence recently, where a weaker dollar isn't necessarily pushing cable higher as expected. I'm curious to hear other traders' perspectives on this dynamic and what factors might be influencing it. Could this be a sign of underlying strength in the USD, or is it something specific to the UK economy?
Replies
Update: Further to my earlier question about the GBPUSD/gold correlation, I've been analyzing the DXY (US Dollar Index) more closely. It seems a strengthening dollar, driven by rising US Treasury yields, is indeed putting downward pressure on cable, regardless of gold's performance. The bearish RSI on the H4 timeframe reinforces this view. I'm now considering a short position, targeting the S1 pivot level around 1.35122 as an initial TP. A break below that level could see further downside towards S2 at 1.34875. I'll keep monitoring the situation and adjust my strategy accordingly.