Pound Sterling Price News and Forecast: GBP/USD limited correction may precede bearish continuation
|GBP/USD Forecast: Bears could target 1.3300 if 10-year US yield gains traction
After failing to break above 1.3400, GBP/USD has met fresh selling pressure and touched its lowest level of 2021 at 1.3341 on Tuesday. The technical picture doesn't point to a recovery in the near term and the pair will remain at the mercy of the dollar's valuation, which has been driven by the US Treasury bond yields.
The benchmark 10-year US Treasury bond yield climbed to a monthly high near 1.7% on Tuesday and helped the greenback continue to outperform its rivals. The US Dollar Index stays in a consolidation phase around mid-96.00s as investors await key data releases from the US. The US Bureau of Economic Analysis will publish the second estimate of the third-quarter GDP growth and the Personal Consumption Expenditure (PCE) Price Index for October. Read more...
GBP/USD outlook: Limited correction may precede bearish continuation
Cable is trading within a narrow range in early Wednesday after hitting new 2021 low (1.3342) on Tuesday but failing to sustain break below previous low of Nov 12 (1.3353). Overall structure remains bearish but long tail of Tuesday’s candle, accompanied with fading negative momentum and oversold stochastic on daily chart, suggest that bears may take a breather before larger downtrend resumes.
Initial resistance lays at 1.3420 (converged 5/10DMA, attempting to form a bear-cross) with extended upticks expected to remain below 1.3500 zone (Nov 18 lower top / falling 20DMA) to keep bears in play for extension towards 1.3288 (100WMA) and more significant support at 1.3164 (Fibo 38.2% of 1.1409/1.4249/200WMA). Read more...
GBP/USD flirts with yearly low, around mid-1.3300s amid Brexit woes/stronger USD
The GBP/USD pair edged lower through the first half of the European session and dropped to mid-1.3300s in the last hour, back closer to a yearly low set in the previous day.
A combination of factors failed to assist the GBP/USD pair to capitalize on the overnight bounce from the 1.3340 area, or the lowest level since December 2020, instead prompted fresh selling on Wednesday. The impasse over the post-Brexit arrangement in Northern Ireland and fishing rights continued acting as a headwind for the British pound. This, along with the emergence of fresh buying around the US dollar, dragged the pair lower for the fourth successive day. Read more...
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