Pound Sterling Price News and Forecast: GBP/USD holds below 1.2700, bear cross eyed
|GBP/USD trades with mild positive bias just below 1.2700, lacks bullish conviction
The GBP/USD pair attracts some buyers for the second straight day on Wednesday and looks to build on the previous day's goodish bounce from sub-1.2600 levels, or over a one-month low. Spot prices currently trade just below the 1.2700 round-figure mark and remain well supported by reduced bets for an early interest rate cut by the Bank of England (BoE).
The UK Office for National Statistics (ONS) reported on Wednesday that the Consumer Price Index (CPI) rose for the first time in 10 months, to 4.0% in December from a more-than-two-year low of 3.9% in the previous month. Adding to this, the core gauge, which excludes volatile food, energy, alcohol and tobacco prices, was unchanged at 5.1% in December as compared to a fall to 4.9% anticipated. The markets were quick to react and are now pricing in a roughly 60% chance that the BoE will start to cut rates by mid-May, down from just over 80% late on Tuesday, which, in turn, is seen underpinning the British Pound (GBP). Read more...
GBP/USD Price Analysis: Holds below 1.2700, bear cross eyed
The GBP/USD pair gains ground below the 1.2700 barrier during the early European session on Thursday. The major pair trades in positive territory for the second consecutive day as traders slashed their bets on an early interest rate cut by the Bank of England (BoE). GBP/USD currently trades near 1.2682, down 0.01% on the day.
From the technical perspective, the bearish outlook of the GBP/USD pair remains intact as the pair holds below the 50- and 100-hour Exponential Moving Averages (EMA) on the four-hour chart. It’s worth noting that the 50-hour EMA is on the verge of crossing below the 100-hour EMA. If a decisive crossover occurs on the four-hour chart, it would validate a Bear Cross, highlighting that the path of least resistance for GBP/USD is to the downside. Read more...
Pound Sterling turns subdued as focus shifts to UK Retail Sales data
The Pound Sterling (GBP) grinds between risk-off market mood and stubbornly high UK Consumer Price Index (CPI) data for December. High UK inflation data has pushed back expectations of early rate cuts by the Bank of England (BoE). The GBP/USD pair is expected to witness more upside as investors hope that the Federal Reserve (Fed) will start reducing interest rates earlier than the BoE.
BoE policymakers are expected to remain on their toes as the UK economic outlook is vulnerable and price pressures are significantly stubborn. Going forward, the Pound Sterling will be guided by the Retail Sales data for December, which is set to be released on Friday. Upbeat consumer spending data would further diminish hopes of an early rate cut by the BoE. Read more...
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