Pound Sterling Price News and Forecast: GBP/USD extremely overbought conditions can trigger fall
|GBP/USD outlook: Weekly close above 1.30 to confirm strong bullish stance and focus 2020 high
Cable is establishing above 1.31 handle on Friday and eyes targets at 1.3212/43 (2020 high/Fibo 61.8% of 1.4376/1.1409) after bulls easily broke strong barriers at 1.3000/17 (psychological/Fibo 76.4% of 1.3514/1.1409) on Thursday. Strong bullish sentiment on weak dollar (charts signal further weakness of the greenback in August) and positive techs point to further advance, as the pair is on track for the second bullish week and the biggest monthly rally since May 2009. Strongly overbought daily studies require caution, as bulls may take a breather before resuming, but weekly close above 1.3000/17 pivots is needed to confirm strong bullish bias and keep immediate focus at the upside. Read More...
GBP/USD Forecast: Northern lockdown for the pound? Extremely overbought conditions can trigger fall
North in Lockdown 2 – the headline of one of Britain's tabloids sums up the developments with which around 4.3 million Brits living in Manchester and in other parts of northern England have to deal with. The spike in cases in these regions triggered an announcement late on Thursday, triggering confusion.
Nevertheless, GBP/USD has extended its relentless northbound ride – stemming in full from the dollar's weakness. The greenback is suffering from a multitude of reasons. Safe-haven flows continue unwinding while speculation of further Fed stimulus – as Yield Curve Control (YCC) are pushing returns on bonds lower, dragging the dollar down with them. Read More...
GBP/USD eases from multi-month tops, holds above 1.3100 mark
The GBP/USD pair trimmed a part of its early strong gains and has now retreated around 35 pips from the 1.3145 area, or the highest level since March 9.
The pair prolonged its recent strong bullish momentum witnessed over the five weeks or so and built on the gains further beyond the 1.3100 mark amid the heavily offered tone surrounding the US dollar. However, extremely overbought conditions on short-term charts held investors from placing fresh bullish bets and led to a range-bound price action during the early part of the European session. Read More...
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