Pound Sterling Price News and Forecast: GBP/USD extends recovery on fresh risk appetite
|GBP rally as a signal that the worst of the markets is over
GBPUSD is trading near 1.2560, having added 3.3% to the monthly lows of May 13. We see a smooth recovery in the Pound from those lows, which is also in line with some easing of risk pull in global markets.
The 0.65% strengthening of GBPUSD on Monday morning looks like a signal that the recovery in risk demand has moved from a corrective bounce after oversold levels but is getting on a more serious track, bringing the pair back to the levels of the beginning of the month.Interestingly, the Pound is giving even stronger signals of risk demand recovery than Bitcoin or the US stock indices, where we saw new multi-month lows inside on Friday afternoon. Read more...
GBP/USD outlook: Cable extends recovery on fresh risk appetite, but overall picture is negative
Cable rose to the highest in over two weeks in early Monday, lifted by improved risk sentiment on comments from US President Biden about possible reduction of tariffs on China. Fresh strength signals an extension of last week’s 2.05% rise (the biggest weekly advance since July 2020), adding to initial reversal signal, generated by weekly bullish engulfing pattern.
Improving daily techs (ascending 14-d momentum broke into positive territory and double bull-crosses of 5/10 and 5/20DMA’s underpin the action) while fresh strength broke through important Fibo barrier at 1.2512 (38.2% of 1.3090/1.2155) and eye pivotal level at 1.2622 (50% retracement / daily Kijun-sen), close above which would add to positive signals. Read more ,,,
GBP/USD rides wave of US dollar weakness, now in the upper 1.2500s as key events loom
GBP/USD is on Monday benefitting from a wave of US dollar weakness and was last trading in the upper 1.2500s, its highest levels in more than two weeks and not far below monthly highs in the mid-1.2600s. Cable’s 0.7% gain on Monday has taken the pair’s rebound since mid-month lows in the mid-1.2100s to an impressive 3.5%.
Whilst the latest leg of strength is being attributed to US dollar weakness, with some citing optimism about China lockdown easings as spurring weakness in the safe-haven buck, sterling was supported last week after UK labour market and consumer price inflation supported the case for further tightening from the BoE, even as evidence continues to build that the UK economy is suffering amid its worst cost-of-living squeeze in decades. Read more ...
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