Pound Sterling Price News and Forecast: GBP/USD bulls likely to target 1.2600

GBP/USD outlook: Bulls struggle at 1.25 zone despite strong UK construction PMI data beat

Fresh strength probed above 1.2500 barrier and hit session high at 1.2509 but gains were so far short-lived as the pair pulled back to 1.2470 zone, despite upbeat UK June construction PMI data (June 55.3 vs 47 f/c, the highest since July 2018). Today's action marks the second probe through south-heading 20DMA (1.2493) which marks solid barrier. Repeated failure to break higher would keep the downside vulnerable, as momentum remains in negative territory and stochastic is about to reverse from overbought zone. We look for initial direction signals on break of pivotal points, provided by 100DMA (1.2447) and 20DMA (1.2494). Close below 100DMA would soften near-term tone and risk attack at lower pivots at 1.2430/23 (10DMA/Fibo 38.2% of 1.2251/1.2529), break of which would confirm reversal. Conversely, close above 20DMA would inflate bulls which would look for extension above 1.2530/30 (last Thursday's high/50% retracement of 1.2813/1.2251 descend) to signal continuation. Read More...

 

GBP/USD Forecast: Bulls likely to target 1.2600 as focus shifts to Brexit talks in London

The GBP/USD pair reversed an intraday dip to the 1.2440-35 region and ended the day with modest gains on the last trading day of the week. The pair extended the previous day's intraday retracement slide from weekly tops and remained on the defensive amid doubts about the possibility of reaching an agreement before the end of the transition period in December 2020, especially after the UK and EU delayed a meeting scheduled on Friday due to the divergences between the two parties. On the economic data front, the UK Services PMI was revised higher to 47.1 from the preliminary reading of 47, albeit failed to impress bullish traders.

However,  growing optimism about a sharp V-shaped global economic recovery continued undermining the US dollar's safe-haven status and helped limit any deeper losses, rather assisted the pair to attract some dip-buying. The pair bounced around 50 pips from daily lows and the uptick remained unaffected by concerns over a continuous surge in coronavirus cases. the upbeat market mood remained supportive of the uptick through the Asian session on Monday. Bulls now seemed to make a fresh attempt to build on the momentum beyond the key 1.2500 psychological mark as the focus now shifts to another round of the key Brexit talks in London. Read More...

 

GBP/USD bulls still await a sustained move beyond 1.2500 mark

The GBP/USD pair maintained its bid tone through the early part of the European trading action, with bulls still awaiting a sustained move beyond the key 1.2500 psychological mark.

The pair built on Friday's intraday positive move of around 50 pips and gained some follow-through traction on the first day of a new trading week. The uptick was exclusively sponsored by sustained selling around the US dollar, which remained depressed and failed to gain any respite from a goodish pickup in the US Treasury bond yields. Read More...