Pound Sterling Price News and Forecast: GBP/USD stalls at Fibo resistance, technical levels remain in play
|GBP/USD set to end the session flat in mid-1.3500s ahead key US, UK data looms
It’s been a subdued session for GBP/USD, with the pair set to end the session flat in the 1.3560s, having swung between highs above 1.3600 to lows in the 1.3520s. The seemed to attract selling interest at the 1.3600 level, given that it also coincides nicely with last Tuesday’s low. But the selling momentum quickly waned, with FX market participants likely to keep their toes out of the water ahead of the two most important data releases of the week for cable; the US October Consumer Price Inflation report, set for release at 1330GMT on Wednesday, and the preliminary estimate of Q3 UK GDP growth, set for release at 0700GMT on Thursday. Read more...
GBP/USD Forecast: British pound stalls at Fibo resistance, technical levels remain in play
GBP/USD has staged a decisive recovery on Monday and erased a large portion of last week's losses before going into a consolidation phase on Tuesday. In the absence of high-tier macroeconomic data releases and fresh headlines surrounding Brexit, GBP/USD's next direction is likely to be dictated by technical developments. While speaking at a virtual event organized by the Bank of England (BoE), Governor Andrew Bailey reiterated that they will have to act with rates in case they see clear evidence of higher inflation feeding into wages. These comments don't seem to be having a noticeable impact on the market pricing of a rate hike in December. As it currently stands, the CME Group's BoEWatch Tool shows a 67.5% chance of a 20 basis points rate hike before the end of the year. Read more...
Brexit angst is heating-up: GBP traders be warned
The start of the week came with renewed fears of a Brexit showdown as the Uk threatened to trigger emergency unilateral provisions in the Brexit divorce deal known as Article 16. Article 16 is a clause in the Protocol on Ireland/Northern Ireland, a key part of the Withdrawal Agreement - the deal under which Britain left the European Union. The Article was sought to avoid a hard border between British-ruled Northern Ireland and EU member Ireland by introducing some checks on the movement of goods to Northern Ireland from mainland Britain. Read more...
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