Pound Sterling Price News and Forecast: GBP/USD time for a fresh dive
|GBP/USD refreshes session tops, eyeing a move beyond 1.2900 mark
The GBP/USD pair refreshed daily tops during the early European session, with bulls making a fresh attempt to build on the momentum beyond the 1.2900 mark.
The pair managed to attract some dip-buying ahead of the 1.2800 round-figure mark and turned positive for the second consecutive session on Tuesday. The uptick was supported by a pickup in demand for the British pound and the prevalent selling bias around the US dollar.
Sentiment surrounding the sterling turned positive despite the passage of the UK government's controversial bill, designed to override parts of the Brexit Withdrawal Agreement (BWA) with the EU. MPs will now begin detailed scrutiny of the bill on Tuesday. Read more...
GBP/USD: Time for a fresh dive
The GBP/USD pair is trading near daily highs just below the 1.29 level, up 0.36% on the day, but Tuesday's 4-hour chart is pointing to further falls as the upswing looks like a corrective move, according to FXStreet's analyst Yohay Elam.
Key quotes: "The downtrend continues – with the latest upswing looking like a necessary correction before the next dive. The Relative Strength Index on the 4-hour chart has risen above 30, exiting oversold conditions and allowing for more falls. The 50 Simple Moving Average is extending its downfall after crossing below the 100 and 200 SMAs, and momentum remains negative." Read more...
GBP/USD to surge to 1.40 by September-2021 – UBS
Economists at UBS advise to hold their nerve on UK assets despite the heightened concerns over the final stages of the Brexit process as the political and economic incentives point to an agreement eventually being reached. This outlook supports UK assets.
Key quotes: "We are positive on the medium-term outlook for sterling, both against the US dollar and against the euro. In line with this view, we are not hedging sterling risk for UK assets held in international portfolios. By September of next year we expect sterling to rise to USD 1.40, against 1.29 at present." Read more...
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