Pound Sterling Price News and Forecast: GBP/USD bulls stalling ahead of longer-term resistance
|GBP/USD Price Analysis: Bears move in as US Dollar firms
GBP/USD is under pressure as the US Dollar corrects. Since the prior analysis, the Federal Reserve has driven markets to reconsider their US Dollar forecasts. However, there are prospects of a deep correction that would be expected to cap the Pound´s advance. Read more...
GBP/USD pares Fed/BoE led gains around 1.2300 ahead of UK Retail Sales, PMI
GBP/USD bulls take a breather around the highest levels in nearly two months, making rounds to 1.2290 after rising in the last two consecutive days, as the volatile week is left with one last ball to play. The Cable pair cheered the US Federal Reserve’s (Fed) dovish rate hike, as well as the Bank of England’s (BoE) readiness for more rate increases to renew the multi-day top of late. However, the mixed US data and sentiment seem allowing the quote to pare recent gains ahead of the key statistics.
On Thursday, the Bank of England (BoE) raised the policy rate by 25 basis points (bps) to 4.25%, as expected. The policy statement highlighted an increase in Q2 Gross Domestic Product (GDP) forecast while also estimating a slower growth in Consumer Price Index (CPI) for the same. "UK banking system is well-placed to support economy, including in a period of higher interest rates," added the BoE statement. It should be noted, however, that the policymakers clearly showed readiness for more rate hikes if inflation stays high, which in turn allowed the GBP/USD to remain firmer. Read more...
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