Pound Sterling Price News and Forecast: GBP/USD – Has pound absorbed its full share of bad news? [Video]
|GBP/USD: Bulls need a closing breakout above 1.3050 to regain control [Video]
The Cable rally has just begun to stall in the wake of the FOMC decision. Technically, we have been talking about the importance of the resistance band 1.2980/1.3050 and with the market turning back from yesterday’s high of 1.3005, this just adds further weight to its importance. Falling over this morning leaves the market stuck under this resistance band. However, it has also been a good response in recent sessions and yesterday’s rebound has broken a two week downtrend. It means that trend lines (both positive and negative) are being broken all over the place. The outlook for Cable is subsequently fairly uncertain.The bulls need a closing breakout above 1.3050 to regain control, whilst selling pressure needs to break back below 1.2760 to really suggest a continued correction. Read More...
Has pound absorbed its full share of bad news?
Since the beginning of this week, the pound has rallied a bit against the dollar. But the market is going through a lot of noise, coming out of the United Kingdom itself. The concerns over Brexit situation continues to worsen.
The UK government is progressing its controversial plan to rewrite the Brexit withdrawal agreement, and is showing no signs of backing down. The chances of a no-deal Brexit are rising notably with worries whether the Internal Markets Bill will make its way through the Commons and Lords successfully. Even if that happens, the European Union is highly unlikely to sign a free-trade agreement with the UK given the lack of trust, and threat of withdrawal agreement breach. Read More...
GBP/USD dives to fresh session lows, below 1.2900 mark post-BoE
The GBP/USD pair came under some fresh selling pressure and slipped below the 1.2900 mark, or fresh daily lows post-BoE announcement.
As was widely expected, the Bank of England left its benchmark interest rates and Asset Purchase Facility unchanged at 0.10% and £745 billion, respectively. In the accompanying policy statement, the UK central bank reiterated the risk of a longer period of elevated unemployment and acknowledged an uncertain growth outlook.
The statement further revealed that the BoE will continue to review a range of possible actions and also discussed the effectiveness of negative interest rates. The dovish sounding statement took its toll on the British pound, which, in turn, was seen as a key factor behind the GBP/USD pair's sudden fall of around 70-75 pips in the last hour. Read More...
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