Pound Sterling Price News and Forecast: GBP/USD testing breakout of a rising channel pattern below 1.2550
|GBP/USD Forecast: Pound Sterling could extend correction toward 1.2500
GBP/USD has started the new week under bearish pressure and declined below 1.2550 after having touched its highest level in nearly a year 1.2584 on Friday. 1.2500 aligns as the next key support for the pair but market participants could opt to remain on the sidelines ahead of the Federal Reserve's policy announcements on Wednesday.
In the absence of high-impact fundamental drivers, GBP/USD has capitalized on month-end flows and registered impressive gains ahead of the weekend. Early Monday, the US Dollar stays resilient against its rivals support by recovering US Treasury bond yields. Read more ...
GBP/USD Price Analysis: Testing breakout of a rising channel pattern below 1.2550
The GBP/USD pair is showing signs of exhaustion in the upside momentum after failing to extend the upside above 1.2583. The Cable has turned sideways around 1.2560 as investors are preparing for monetary policy by the Federal Reserve (Fed), which is scheduled for Wednesday.
The risk profile is favoring risk-sensitive assets as S&P500 futures are having minimal gains after a bullish Friday. Investors were gung-ho for United States equities after a solid quarterly performance from tech-savvy stocks. Read more ...
GBP/USD drops to fresh daily low amid stronger USD, holds above 1.2500 mark
The GBP/USD pair comes under some selling pressure on the first day of a new week and erodes a part of Friday's strong gains to the 1.2580-1.2585 region, or its highest level since June 2022. Spot prices extend the steady intraday descent through the early part of the European session and drop to a fresh daily low, around the 1.2520 area in the last hour.
A combination of supporting factors assists the US Dollar (USD) to gain positive traction for the third successive day, which, in turn, is seen dragging the GBP/USD pair lower. The prospects of the Federal Reserve (Fed) raising interest rates by another 25 basis points (bps) at the end of a two-day meeting on Wednesday, along with looming recession risks, continue to act as a tailwind for the safe-haven Greenback.
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