Pound Sterling Price News and Forecast: GBP/USD climbs to fresh daily high
|GBP/USD Forecast: Pound Sterling needs to reclaim 1.2200 to attract bulls
GBP/USD has gone into a consolidation phase at around 1.2150 mid-week after having registered modest losses on Monday and Tuesday. In case the pair rises above 1.2200 and starts using that level as support, additional buyers could come into play and open the door for another leg higher.
The risk-averse market atmosphere helped the US Dollar outperform its rivals on Tuesday and caused GBP/USD to continue to push lower. Early Wednesday, US stock index futures are little changed on the day and the UK's FTSE 100 Index is moving sideways near Tuesday's closing level, pointing to a neutral market mood. Read more...
GBP/USD climbs to fresh daily high, around 1.2175-80 area amid modest USD weakness
The GBP/USD pair shows some resilience below a technically significant 200-day Simple Moving Average (SMA) and attracts some buyers near the 1.2100 mark on Wednesday. The intraday uptick pushes spot prices to a fresh daily high, around the 1.2175-1.2180 region during the mid-European session, though any meaningful positive move seems elusive.
The US Dollar struggles to find acceptance above the very important 200-day SMA and for now, seems to have stalled this week's goodish recovery move from over a five-month low. This, in turn, is seen as a key factor acting as a tailwind for the GBP/USD pair. Meanwhile, the intraday USD pullback from a fresh weekly high lack any obvious fundamental catalyst and is likely to remain limited amid hawkish Fed expectations. Read more...
GBP/USD set return to the 1.19 area – ING
GBP/USD stays on the back foot and continues to stretch lower toward 1.2100. Economists at ING expect the pair to trade back to the 1.19 zone.
“If we are turning to a more macro-led trading environment, then Sterling should underperform.”
“A Fed staying hawkish into a recession should see equity markets come under renewed pressure. Typically, this is a negative environment for Sterling, where the UK's large current account deficit is penalised.”
“GBP/USD has turned from a strong resistance level at 1.23 and our bias into next week would be for a return to the 1.19 area.” Read more...
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