Pound Sterling Price News and Forecast: GBP/USD is oversold, could find a bottom and then bounce
|Daily technical and trading outlook – GBP/USD
GBP/USD - 1.3639.. Cable remained under pressure y'day n fell fm 1.3758 (AUS) to 1.3713 in Asia. Intra-day decline accelerated in Europe due on usd's rally together with cross-selling in sterling, price tumbled to 1.3631 in NY.
On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven usd's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in late Feb suggests a major low is made. Despite hit- ting a 3-year peak of 1.4250 on Jun 01, selloff to as low as 1.3753 in Jul con- firms long-awaited correction has occurred. Read more...
GBP/USD Forecast: Sterling is oversold, could find a bottom and then bounce
How low can sterling go? Further than many had thought, it seems. GBP/USD is down some 200 pips on the week in a sharp move mostly recorded after the Federal Reserve's meeting minutes raised expectations of tapering. If the Fed prints fewer dollars, the currency is worth more.
Another greenback booster has come to the forefront. The Delta covid variant has been gaining attention, especially after reports of overwhelmed Intensive Care Units (ICUs) in Alabama and the illness of three Senators. All were fully vaccinated. The White House's intent to allow Americans of all ages to receive booster shots is also dampening the mood. Read more...
GBP/USD flirts with one-month lows, 1.3600 mark remains in sight
The GBP/USD pair maintained its offered tone following the disappointing release of UK macro data and was last seen trading near one-month lows, around the 1.3615 region.
The pair extended the previous day's bearish breakdown momentum and continued losing ground through the first half of the trading action on the last day of the week. This marked the second consecutive day of a negative move – also the fourth in the previous five – and was sponsored by a combination of factors. Read more...
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