Pound Sterling Price News and Forecast: GBP/USD 200-day SMA, around 1.2100 mark holds the key for bulls
|GBP/USD Price Forecast 2023: Pound Sterling set to struggle amid Fed-BoE contrast, economic woes
Will the recovery in the GBP/USD pair extend into 2023? Will the US Dollar re-accumulate safe-haven demand? Where is the Cable price headed next year? These questions are flooding my mind as I set out to analyze the GBP/USD price forecast for 2023. In order to understand how 2023 would shape up for the GBP/USD pair, it’s necessary to have a clear picture of how the currency pair fared in the past year.
Not something to boast about but the Pound Sterling managed to pull off an impressive 11% recovery against the US Dollar in the final quarter of 2022, having lost 25% of its value in the first nine months of the year. The Cable lost 15% alone in the month of September, in what turned out to be the worst nightmare for GBP markets in almost four decades. Read more...
GBP/USD Forecast: 200-day SMA, around 1.2100 mark holds the key for bulls
The GBP/USD pair defends a technically significant 200-day SMA support and attracts some buyers on the first day of a new week. The pair, for now, seems to have stalled its recent pullback from a six-month top and snapped a two-day losing streak. Signs of stability in the equity markets undermine the safe-haven US Dollar, which, in turn, is seen offering some support to the major. That said, any meaningful upside for the pair seems elusive, warranting caution for aggressive bullish traders.
Despite the easing of strict COVID-19 restrictions in China, a sharp rise in new infections could delay the full reopening of the economy. This, along with the protracted Russia-Ukraine war, has been fueling worries about a deeper global economic downturn, which should keep a lid on any optimism. Apart from this, a more hawkish commentary by the Fed last week supports prospects for the emergence of some USD dip-buying, which could further contribute to capping the GBP/USD pair. Read more...
GBP/USD maintains its bid tone above 1.2200, upside potential seems limited
The GBP/USD pair attracts some buying near a technically significant 200-day SMA support on Monday and stick to its gains through the first half of the European session. The pair is currently placed near the daily high, around the 1.2230 region and remains well supported by a modest US Dollar weakness.
A slight recovery in the global risk sentiment - as depicted by a generally positive tone around the equity markets - prompts fresh selling around the safe-haven buck. That said, a combination of factors might hold back traders from placing aggressive bearish bets around the USD and keep a lid on any meaningful upside for the GBP/USD pair, at least for the time being. Read more...
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