British Pound Sterling Price News and Forecast: GBP/USD is consolidating gains at the start of the week
|GBP/USD Price Analysis: Pound consolidates gains near 1.2400 handle
GBP/USD is consolidating gains as the market is trading above the 50 and 100 SMAs. Bulls want a continuation of the strong bullish momentum by breaking above the 1.2444/1.2500 resistance zone en route towards the 1.2600 figure while support can be expected near the 1.2350, 1.2280 and 1.2130 price levels.
GBP/USD back over $1.24 post fitch downgrade
The Pound slipped as investors weighed up the impact of a ratings cut by Fitch late on Friday. The ratings agency cited the coronavirus impact and uncertainty over Brexit as the motive for cutting the UK’s rating from AA to AA-. Fitch predicted that UK GDP would drop 4% this year owing to the pandemic related downturn. The rating agency was also concerned about the UK’s fiscal loosening stance amid its big spending plans to shore up the economy.
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