Pound Sterling Price News and Forecast: GBP/USD recaptures critical trendline resistance at 1.2275
|Daily technical and trading outlook – GBP/USD
GBP/USD - 1.2263.. Trading cable was tricky in Thur's 'roller-coaster' session. Although price fell in tandem with euro to 1.2171 in Europe, an upside beat in UK PMIs triggered short-covering rally to 1.2294 in NY b4 retreating.
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 Feb suggests a major low is made. Despite hitting a 3-year peak of 1.4250 in Jun 2021, subsequent selloff to a 23-month 1.2156 low in mid-May may confirms long-awaited correction has occurred. Read more ...
GBP/USD Price Analysis: Recaptures critical trendline resistance at 1.2275
GBP/USD is moving back and forth in a 40-pips narrow range so far this Friday, now attempting another bounce towards 1.2300. The renewed upside in the major is fuelled by a bout of weakness seen in the US dollar across its main peers, as risk sentiment receives a fresh boost. Easing rate hike expectations from the ECB and BOE amid increasing recession risks is helping calm the market nerves.
Bulls, however, could face a hard time extending the latest uptick, as the UK political jitters remain in play. A senior Tory party member resigned after the ruling Conservative Party lost two crucial seats in the parliamentary by-elections on Friday. The latest news put PM Johnson’s leadership in jeopardy, which could undermine the sterling’s upswing. Read more ...
GBP/USD eases from daily high, struggles to find acceptance above 1.2300 mark
The GBP/USD pair built on the previous day's bounce from the vicinity of the weekly low, around the 1.2170-1.2160 area and gained some positive traction on Friday. The pair maintained its bid tone through the early North American session, though seemed to struggle to capitalize on the move or find acceptance above the 1.2300 round-figure mark.
Some cross-driven strength stemming from the ongoing retracement slide in the EUR/GBP cross, from over a one-week high touched on Thursday, acted as a tailwind for the British pound. On the other hand, the risk-on impulse undermined the safe-haven US dollar, which, to a larger extent, helped offset dismal UK data and offered some support to the GBP/USD pair. Read more ...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.