Pound Sterling Price News and Forecast: GBP/USD pound Sterling tests key support
|GBP bounces back
The high beta pound edges higher on improved market sentiment. A surge above 1.2080 has prompted short-term sellers to cover their positions. This could be the signal the bulls have been waiting for after the pair drifted lower in search of support. As the RSI returns to the neutrality area, the supply-turned-demand zone around 1.2050 is the first level to expect follow-up bids. 1.1900 is a critical support in case of a deeper pullback. On the upside, a close above 1.2300 could pave the way for a bullish reversal in the medium-term. Read more...
GBP/USD Forecast: Pound Sterling tests key support
After having staged a technical correction on Tuesday, GBP/USD has edged slightly lower in the early European morning on Wednesday. Nevertheless, the pair manages to hold slightly above the key support level that is located at 1.2140. If that level fails, additional losses could be witnessed in the near term.
The improving market mood seems to be helping GBP/USD limit its losses for the time being. As of writing, the UK's FTSE 100 Index was rising 0.6% on the day and US stock index futures were up modestly. Amid a lack of fundamental drivers and high-tier data releases, however, investors could stay on the sidelines and Wall Street's main indexes could have a hard time making a decisive move in either direction. Read more...
GBP/USD slides below mid-1.2100s, downside seems cushioned amid subdued USD demand
The GBP/USD pair struggles to capitalize on its modest intraday uptick and attracts some sellers near the 1.2175-1.2180 region on Wednesday. Spot prices slide back below mid-1.2100s during the first half of the European session, though remain well within the previous day's broader trading range.
A bleak outlook for the UK economy has been fueling speculations that the Bank of England (BoE) is nearing the end of the current rate-hiking cycle and undermines the British Pound. This, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair, though subdued US Dollar price action helps limit the downside, at least for the time being. Read more...
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