Pound Sterling Price News and Forecast: GBP/USD Strong risk of additional weakness towards the 1.17/1.18 zone
|GBP/USD Forecast: Pound Sterling recovery to remain limited unless there is a risk rally
GBP/USD extended its slide in the Asian trading hours on Tuesday and touched its weakest level since March below 1.2100. The pair's technical outlook points to oversold conditions in the near term. Considering how GBP/USD continued to push lower for several days despite staying in the oversold territory in late September, a technical correction could remain limited unless there is a convincing improvement in risk sentiment.
As the US bond sell-off picked up steam in the American session on Monday, the US Dollar (USD) gathered strength and forced GBP/USD to turn south. Additionally, the ISM Manufacturing PMI survey showed a noticeable improvement in the manufacturing sector's activity, in addition to a further decline in input inflation and an expansion in employment in September, and allowed the USD to continue to outperform its rivals. Read more...
GBP/USD Strong risk of additional weakness towards the 1.17/1.18 zone – Scotiabank
The GBP/USD pair tests retracement support just below 1.21. Economists at Scotiabank analyze Cable’s technical outlook. Read more...
Pound Sterling remains under pressure on UK's economic turmoil
The Pound Sterling (GBP) witnessed a sell-off on Monday after a pullback move and has extended the downside move on Tuesday as investors foresee a slowdown in the United Kingdom’s economy due to economic turmoil. The GBP/USD pair weakened after S&P Global reported the Manufacturing PMI contracted for the 14th time in a row in September as firms underutilized their capacity, cut inventories sharply, and trimmed their workforce amid a poor demand outlook.
While investors think the Bank of England (BoE) is done hiking interest rates after it paused its policy-tightening spell last month to avert recession fears, policymaker Katherine Mann has a different verdict from her teammates. Read more...
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