Pound Sterling Price News and Forecast: GBP/USD extends sideways pattern between SMAs
|GBP/USD Forecast: Pound Sterling faces key hurdles as recovery continues
GBP/USD has regained its traction following a pullback in the Asian session and advanced toward 1.2100 early Tuesday. The pair's near-term technical outlook points to a buildup of bullish momentum and additional gains could be witnessed once it manages to clear two key hurdles at 1.2100 and 1.2120.
GBP/USD registered strong gains on Monday as the improving market mood and the disappointing January Durable Goods Orders from the US caused the US Dollar (USD) to weaken against its major rivals. Read more...
GBP/USD extends sideways pattern between SMAs
GBPUSD has been edging higher since September when it found its feet at the all-time low of 1.0324. However, this latest rebound seems to be fading after being rejected twice at the 1.2445 region, with the price remaining stuck in a tight range formed by its 50- and 200-day simple moving averages (SMAs).
Despite the pair’s rangebound pattern, the short-term oscillators are indicating that near-term risks remain tilted to the downside. Specifically, the RSI is pointing downwards after failing to cross above the 50-neutral mark, while the MACD histogram is currently below both zero and its red signal line. Read more...
GBP/USD climbs to 1.2100 amid Brexit optimism and softer USD, lacks follow-through
The GBP/USD pair reverses an intraday dip to the 1.2025 area and turns positive for the second straight day on Tuesday. The momentum lifts spot prices to a four-day high during the first half of the European session, with bulls now awaiting a sustained move beyond the 1.2100 round-figure mark.
The British Pound continues to draw support from the optimism over the confirmation of a final deal on the Northern Ireland protocol between the UK and EU. Apart from this, rising bets for additional rate hikes by the Bank of England (BoE), along with the emergence of some US Dollar selling, lend support to the GBP/USD pair. The upside, however, remains capped amid reports that the former UK Prime Minister Borish Johnson asked the Democratic Unionist Party (DUP) leaders to be cautious and think hard before backing the "Windsor framework". Read more...
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