Pound Sterling Price News and Forecast: GBP/USD takes a breather after wild ride
|Daily technical and trading outlook – GBP/USD
GBP/USD - 1.160.. Although cable fell in tandem with euro in Aust. on Thur to 1.0763 ahead of European open, price later jumped due to BoE's bond buying for a 2nd day, price later rallied to 1.1120 in NY, then 1.1220 today.
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, rally to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a 3-year peak of 1.4250 in May 2021 suggests low is in place. Read more ...
Pound takes a breather after wild ride
The British pound has posted slight gains, after a spectacular showing on Thursday. In the European session, GBP/USD is trading at 1.1145, up 0.26%. For anyone looking for lots of volatility, look no further. The pound has taken riders on a wild ride, with GBP/USD surging 2.1% on Thursday. On Monday, the pound traded in a stunning 500-point range, which saw GBP/USD touch a record low of 1.0359. Since then, the pound has padded on 800 points, in what has been a truly remarkable week.
The driver behind the pound’s volatility was Chancellor Kwarteng’s mini-budget, which included tax cuts and increased borrowing. The package was roundly criticized, with even the IMF and US officials panning the plan. This led to a near-crash in the UK bond market, forcing the Bank of England to take emergency measures and pledge unlimited purchases of securities. The bailout will continue for over two weeks and could cost up to 60 billion pounds. Read more ...
GBP/USD clings to gains near weekly high, bulls await sustained move beyond 1.1200 mark
The GBP/USD pair reverses an intraday dip to the 1.1070 area and climbs back closer to a one-week high touched earlier this Friday. The pair sticks to its positive bias for the fourth successive day, with bulls now awaiting a sustained move beyond the 1.1200 round-figure mark.
The Bank of England's intervention for the second day on Thursday restores stability in the UK debt market. Furthermore, an upward revision of the UK GDP print underpins the British pound and acts as a tailwind for the GBP/USD pair. The UK Office for National Statistics reported this Friday that the economy expanded by 0.2% during the second quarter against a modest 0.1% contraction estimated, easing recession fears. Read more ...
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