Pound Sterling Price News and Forecast: GBP/USD treads water above 1.2700, eyes on Bailey’s speech
|GBP/USD outlook: Bears take a breather before attempting through key supports
Cable is consolidating within narrow range above Wednesday’s nine week low (1.2675) after bears managed to close below the base of thick daily cloud but failed to register close below next pivotal support at 1.2690 (Fibo 38.2% of 1.1409/1.3482).
Wednesday’s long-legged Doji candle points to indecision, as bears face headwinds from key support zone at 1.2719/1.2690 (200DMA / Fibo 38.2%) and deeply oversold stochastic.
Near-term sentiment remains negative as risk aversion and drop in equities continue to inflate dollar, while some positive tones could be heard on optimism on Brexit talks.Consolidation is likely to precede final break of 1.2690 pivot that would open way for deeper correction of 1.1409/1.3482 (Mar-Aug rally). Read More...
GBP/USD treads water above 1.2700, eyes on Bailey’s speech
GBP/USD looks to extend its overnight consolidation phase above 1.2700 into Europe, having faded the recovery momentum near 1.2775 region.
The cable witnessed a good 100-pips price movement on Wednesday, initially falling to the lowest levels since July 23 at 1.2674, as investors fretted over the UK’s nascent economic recovery after Prime Minister (PM) Boris Johnson’s government announced activity restriction on Tuesday to contain the virus spread. Even so, the Kingdom reported 6,178 new infections, the biggest daily jump since May. Read More...
GBP/USD Forecast: Not out of the woods yet amid coronavirus jitters, Brexit uncertainties
The GBP/USD pair seesawed between tepid gains/minor losses through the early European session and consolidated its recent fall to two-month lows. Investors remain worried that the second wave of coronavirus infections could lead to the return of severe lockdown restrictions and derail the global economic recovery. This, in turn, continued driving some haven flows towards the US dollar. However, warnings by various Fed officials, stressing the need for more fiscal stimulus to sustain the recovery, kept a lid on any strong gains for the USD and helped limit any deeper losses for the major.
On the other hand, the British pound was trying to find its footing amid persistent Brexit-related uncertainties. It is worth reporting that the EU's chief Brexit negotiator, Michel Barnier in London for informal talks until Friday. Investors now seemed reluctant and preferred to wait for fresh Brexit updates before placing any aggressive bets. This, in turn, led to the pair's subdued/range-bound price action through the first half of the trading action on Thursday. Nevertheless, increasing odd of a messy Brexit at the end of the transition period should keep a lid on any strong gains for the pair. Read More...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.