Pound Sterling Price News and Forecast: GBP/USD to extend its gains towards 1.2730/2770
|GBP/USD Forecast: Acceptance above 1.2600/38.2% Fibo, favor bulls amid weaker USD
The GBP/USD pair edged higher on the first day of a new week, albeit lacked follow-through buying and remained below a one-month peak touched on Friday. Market participants now expect that the Fed could pause the rate hike cycle after two 50 bps hikes each in June and July in order to prevent the economy from tipping into recession. The bets were reaffirmed by Friday's release of the US Personal Consumption Expenditure (PCE) data for April, which suggested that inflationary pressures in the US could be easing. Read more...
GBP/USD to extend its gains towards 1.2730/2770 – ING
GBP/USD is clinging to the early gains while trading below 1.2650. Economists at ING expect the cable to advance nicely towards 1.2730/2770 in the week ahead.
“The GBP/USD bounce has certainly been slightly stronger than we thought (we had thought 1.2600/2650 would be the corrective top) and a slightly negative dollar environment at the start of this week could see GBP/USD extend to 1.2730/2770.” Read more...
GBP/USD consolidates near one-month highs in mid-1.2600s in holiday thinned trade, eyes upcoming risk events
Trading conditions are quiet on Monday amid a lack of US market participants given market closures there for the Memorial Day public holiday. GBP/USD is nonetheless trading close to the one-month highs it printed last Friday in the 1.2670 area at just below 1.2650 amid an upbeat tone to risk appetite at the start of the week. The pair is on course to have rallied around 4.0% from mid-month lows in the mid-1.2100s, a move which analysts are mostly putting down to the weakening of the US dollar, which has continued this Monday. Read more...
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