Pound Sterling Price News and Forecast: GBP/USD forecast – Pound Sterling remains fragile
|GBP/USD to remain above 50 day moving average until US debt ceiling crisis resolved
In March, the value of the British pound reached a low of 1.18 against the US dollar, which strengthened after Federal Reserve Chair Jerome Powell commented that higher interest rates are needed to control inflation.
However, a few days later, the Silicon Valley Bank (SVB) collapsed, which began the ‘2023 Banking Crisis’. This weakened the USD, as investors theorised that the Federal Reserve would need to cut rates to avoid deepening the crisis. As a result, the GBP has been increasing in value against the USD since then. Read more ...
GBP/USD Forecast: Pound Sterling remains fragile
GBP/USD has lost its traction in the early European morning on Tuesday and touched its lowest level in a month, slightly below 1.2400. The pair's near-term technical outlook suggests that sellers retain control. Bank of England (BoE) Governor Andrew Bailey will testify on monetary policy before the UK Treasury Select Committee and investors will continue to pay close attention to risk sentiment.
Following Monday's face-to-face meeting, US President Joe Biden and House Speaker Kevin McCarthy failed to reach a deal to lift the government's $31.4 trillion debt limit, causing markets to remain cautious. Early Tuesday, US stock index futures trade mixed and a negative shift in market mood in the second half of the day could allow the US Dollar (USD) to preserve its strength. Read more ...
GBP/USD drops to over one-month low, further below 1.2400/50-day SMA on weaker UK PMIs
The GBP/USD pair comes under some renewed selling pressure on Tuesday and drops to over a one-month low during the first half of the European session. The pair is currently placed just below the 1.2400 round-figure mark, down around 0.35% for the day, confirming a fresh breakdown through the 50-day Simple Moving Average (SMA).
A combination of factors lifts the US Dollar (USD) back closer to its highest level since March 20 touched last Friday, which, in turn, is seen dragging the GBP/USD pair lower. The overnight hawkish remarks by a slew of influential Federal Reserve (Fed) officials reaffirmed expectations that the US central bank will keep interest rates higher for longer. Read more ...
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