Pound Sterling Price News and Forecast: GBP/USD capitalizes on improved market mood as US Dollar corrects
|GBP/USD Forecast: Pound Sterling could face strong resistance at 1.2200
GBP/USD came within a touching distance of 1.2100 on Wednesday and spent the Asian session in a tight channel on Thursday. In the European morning, the pair gathered recovery momentum and climbed above 1.2150.
US Treasury bond yields' rally continued mid-week as markets reacted to the lack of progress in US budget negotiations. Unless Republicans and Democrats reach an agreement to fund the government before the October 1 deadline, investors could refrain from betting on a risk rally. Read more...
Pound Sterling capitalizes on improved market mood as US Dollar corrects
The Pound Sterling (GBP) discovered a cushion near 1.2100 after a mild correction in the US Dollar improved the appeal for risk-sensitive assets. Earlier, the GBP/USD pair was on the backfoot as investors were dumping risk-perceived assets due to a cautious market mood. The GBP/USD outlook remains vulnerable as risks of a recession in the United Kingdom have increased due to vulnerable economic prospects. The UK’s Manufacturing and Services PMI, which gauge the health of both sectors, have fallen into contraction territory, while strong labor demand appears to be fading. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.