Pound Sterling Price News and Forecast: GBP/USD room for extra decline below 1.3300
|GBP/USD Forecast: Pound needs to break above 1.3360 to convince buyers
GBP/USD has lost its traction in the late American session and ended up closing in negative territory on Monday but managed to gather recovery momentum early Tuesday. The dollar's market valuation continues to impact GBP/USD's movements and the pair could find it difficult to extend its rebound unless the greenback stays under selling pressure.
Falling US Treasury bond yields are weighing on the dollar as investors adopt a cautious stance while trying to figure out how the new coronavirus variant will affect global economic activity. At the time of press, the US Dollar Index was down 0.37% on the day at 95.83 and the benchmark 10-year US Treasury bond yield was nearly 3% lower at 1.441%. Read more...
GBP/USD: Room for extra decline below 1.3300 – UOB
FX Strategists at UOB Group suggested Cable could breach below the 1.3300 level and attempt a test of 1.3260 in the near term.
24-hour view: “Yesterday, we highlighted that ‘downward pressure has eased and this coupled with oversold conditions suggest that the current movement is part of a consolidation phase’ and we expected GBP to ‘trade within a range of 1.3300/1.3365’. GBP subsequently traded between 1.3288 and 1.3357 before closing little changed at 1.3318 (-0.09%). We continue to view the current movement as part of a consolidation and expect GBP to trade between 1.3285 and 1.3360 for today.” Read more...
GBP/USD climbs to multi-day top, around 1.3365-70 region
The GBP/USD pair caught fresh bids during the early European session and shot to the 1.3365-70 area, or a near one-week high in the last hour.
Following a brief consolidation through the first half of the trading action on Tuesday, the GBP/USD pair regained positive traction and is now looking to build on its recent bounce from a YTD low. The uptick was exclusively sponsored by the heavily offered tone surrounding the US dollar, weighed down by a steep decline in the US Treasury bond yields. Read more...
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