Pound Sterling Price News and Forecast: GBP/USD can buyers defend 1.3500 on a strong NFP print?
|Daily technical and trading outlook – GBP/USD
GBP/USD - 1.3534. Although cable met active selling ahead of Asian open on Thur FM 1.3559 (AUS) n tumbled to session lows of 1.3491, active cross-buying in sterling lifted price to 1.3558 in NY morning b4 moving sideways later.
On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven USD's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month, 1.4241 peak in late Feb suggests a major low is made. Despite hitting a 3-year peak of 1.4250 on Jun 01, selloff to as low as 1.3162 in Dec signals long-awaited correction has occurred. Read more...
GBP/USD Forecast: Can buyers defend 1.3500 on a strong NFP print?
GBP/USD has been moving sideways around 1.3550 so far on Friday after closing in the negative territory on Thursday. Investors await the US Bureau of Labor Statistics to release the December jobs report, which could have a significant impact on how markets price the Federal Reserve's policy outlook.
The FOMC's December policy meeting minutes showed on Wednesday that participants saw it appropriate to start the balance sheet normalization process after the first hike. The publication further revealed that current economic conditions, namely the inflation outlook and the state of the labour market, were seen as factors that would allow a faster balance sheet runoff than the previous financial crisis. Read more...
GBP/USD holds steady near mid-1.3500s, 100-DMA as traders await the key NFP report
The GBP/USD pair maintained its bid tone, around the 1.3540-50 area through the first half of the European session, albeit seemed struggling to break through the 100-day SMA resistance.
Following the previous day's modest pullback and the subsequent bounce from sub-1.3500 levels, the GBP/USD pair managed to regain positive traction on Friday amid modest US dollar weakness. A generally positive tone around the equity markets was seen as a key factor that undermined the safe-haven greenback and extended some support to the major. Raed more...
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