Pound Sterling Price News and Forecast: GBP/USD bulls struggle to find acceptance above 1.3100 mark
|GBP/USD Forecast: Bowling back in business but sterling has reasons to stay stuck in a dark alley
Casons, theaters – and bowling alleys – are among the establishments that will be able to reopen from the weekend in England. That is another step toward returning to normal after the UK suffered the highest death toll in Europe – even after reducing the number of mortalities due to a methodology change.
The pound-positive development is simultaneously marred by another COVID-19-related announcement – Britain will require all those coming from France, the Netherlands, and several other countries to quarantine. Read More...
GBP/USD Analysis: Bulls struggle to find acceptance above 1.3100 mark
The GBP/USD pair gained some strong positive traction on Thursday and recovered further from the key 1.3000 psychological mark, or over one-week lows set in the previous session. The positive move was exclusively sponsored by the prevalent offered tone surrounding the US dollar, which remained depressed in the wake of the impasse over the next round of the US fiscal stimulus. The pair surged past the 1.3100 round-figure mark, albeit struggled to capitalize on the move and ran out of the steam just ahead of the weekly tops.
Data released from the US showed that initial weekly jobless claims dropped below one million for the first time since the start of the pandemic, offering signs of the US economic recovery. This coupled with an intraday spike in the US Treasury bond yields provided some respite to the USD. Adding to this, a cautious mood around the US equity markets drove some haven flows towards the greenback and prompted some selling at higher levels. Read More...
GBP/USD analysis: Tests 200-hour SMA
Yesterday, the GBP/USD exchange rate re-tested the psychological level at 1.3120. During Friday morning, the rate was testing the 200-hour SMA near 1.3080.
If the given moving average holds, it is likely that the currency pair could reverse south and re-test the lower boundary of the medium-term ascending channel circa 1.3030.
On the other hand, the pair could gain support from the 55– and 100-hour SMAs near 1.3060. Thus, it is likely that some upside potential could prevail in the market. Read More...
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