Pound Sterling Price News and Forecast: GBP/USD bears pause above key Fibo support
|GBP/USD Forecast: Technical trading opportunities ahead of central bank meetings
GBP/USD has gone into a consolidation phase on Monday with trading conditions remaining thin due to the Early May holiday in the UK. Ahead of this week's highly-anticipated central bank meetings, the pair's fluctuations in the well-defined range could be seen as technical trading opportunities.
GBP/USD gained nearly 1% amid broad-based dollar weakness on Friday and snapped a six-day losing streak. The greenback, however, holds its ground early Monday amid a negative shift witnessed in risk mood and doesn't allow the pair to gain traction. Read more...
GBP/USD outlook: Bears pause above key Fibo support, awaiting BoE policy decision for fresh signals
Larger bears are pausing above new multi-month low, after sterling fell 4.3% in April, suffering the biggest monthly loss since June 2016. Sterling bounced after failing to register weekly and monthly close below cracked pivotal Fibo support at 1.2494 (61.8% of 1.1409/1.4249), due to oversold conditions and expectations for fresh signals from the Bank of England’s policy meeting this week.
Technical studies are in full bearish setup on daily chart, with oversold indicators suggesting a pause in the latest steep fall, however more hawkish than expected BoE could spark stronger recovery. The central bank is expected to raise rate by 25 basis points to 1%, with hawkish outlook for the coming months, to be supportive for pound. Read more...
GBP/USD recovers but flat-lining below 1.2600 mark
The GBP/USD pair has recovered its modest intraday losses and was last seen trading in neutral territory, around the 1.2575-1.2580 region during the early European session. The pair struggled to capitalize on Friday's strong recovery move from its lowest level since July 2020 and edged lower on the first day of a new week amid the emergence of fresh US dollar buying. The prospects for a more aggressive policy tightening by the Fed assisted the greenback to regain positive traction and inch back closer to the multi-year peak touched last week.
In fact, the markets expect the US central bank to hike interest rates at a faster pace and ultimately lift the benchmark rates to around 3.0% by the end of the year to combat stubbornly high inflation. This was reinforced by elevated US Treasury bond yields, which, in turn, continued acting as a tailwind for the greenback and exerted some downward pressure on the GBP/USD pair. Read more...
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