Pound Sterling Price News and Forecast: GBP/USD licks its wounds after the biggest daily loss in seven weeks
|GBP/USD Price Analysis: Cable bears need validation from 1.2500 and UK GDP to keep the reins
GBP/USD seesaws around 1.2515 during early Friday morning in Asia, after posting the biggest daily fall since March 07.
In doing so, the Cable pair justifies the downside break of a two-month-old ascending trend line, as well as bearish MACD signals. However, an upward-sloping trend line from late March, around 1.2500 round figure by the press time, joins the oversold RSI (14) line suggesting a corrective bounce in the GBP/USD price. Read more...
GBP/USD licks BoE-inflicted wounds below 1.2540 hurdle ahead of UK GDP, US inflation clues
GBP/USD stays defensive near 1.2520 even as it renews intraday high ahead of the all-important UK Gross Domestic Product (GDP) data during early Friday. Not only the pre-data positioning but the market’s downbeat expectations and fears of a positive surprise also allow the Pound Sterling to pare recent losses, especially amid the US Dollar inaction ahead of the US inflation clues.
The Cable pair slumped the most in seven weeks the previous day even after the Bank of England (BoE) lifted the policy rate by 25 basis points (bps) to 4.5%. Following the interest rate decision, BoE Governor Andrew Bailey delivered his remarks while saying, “We are not giving a directional steer on rates.” BoE’s Bailey added, “Good reasons to think CPI will fall sharply from April,” the same seemed to have drowned GBP/USD price following the news. Read more...
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