Pound Sterling Price News and Forecast: GBP/USD now targets the 1.3220 region
|GBP/USD Forecast: Can a 25 bps BOE hike lift the pound?
GBP/USD has capitalized on the broad-based selling pressure surrounding the greenback and continued to push higher toward 1.3200 after posting gains in the previous two days. The pair faces strong resistance at 1.3200 and needs the Bank of England (BOE) to deliver a hawkish surprise to clear that hurdle.
On Wednesday, the US Federal Reserve raised its policy rate by 25 basis points (bps). The Summary of Economic Projections pointed to six more rate hikes in 2022 and helped the greenback outperform its rivals. With FOMC Chairman Jerome Powell sounding confident on their ability to tame inflation while keeping the strong growth intact, risk flows took control of markets in the late American session and caused the dollar to lose interest. Read more...
GBP/USD now targets the 1.3220 region – UOB
FX Strategists at UOB Group suggested the upside momentum in GBP/USD could extend to the 1.3220 area in the next weeks.
24-hour view: “Our expectations for GBP consolidate yesterday were incorrect as it soared to 1.3156 before closing on a firm note at 1.3146 (+0.77%). The rapidly improving momentum is likely to lead to further GBP strength. In view of the overbought conditions, any advance in GBP is unlikely to challenge the major resistance at 1.3220 (minor resistance is at 1.3180). Support is at 1.3125 followed by 1.3090.” Read more...
GBP/USD plummets to 1.3100 mark on BoE's 8-1 rate hike vote distribution
The GBP/USD pair plunged over 100 pips from a near two-week high and refreshed daily low, around the 1.3100 mark after the Bank of England announced its policy decision.
As was widely expected, the UK central bank raised its key rate by 25 bps to 0.75% at the end of the March policy meeting this Thursday. This marked the third straight hike in as many meetings, though the 8-1 vote distribution disappointed investors and prompted aggressive selling around the GBP/USD pair. Read more...
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