Pound Sterling Price News and Forecast: GBPUSD – Cable buyers approach 1.2400 resistance confluence
|GBP/USD Forecast: Pound Sterling needs to hold above 1.2360 for extended recovery
GBP/USD has started the new week in a quiet manner with the Spring Bank Holiday in the UK and the Memorial Day holiday in the US causing trading volumes to remain thin. The pair's near-term technical outlook shows that buyers remain on the sidelines but an extended correction could be observed once Pound Sterling stabilizes above 1.2360.
Hawkish Federal Reserve (Fed) bets provided a boost to the US Dollar (USD) last week and caused GBP/USD to lose nearly 100 pips. Ahead of the weekend, the US Bureau of Economic Analysis reported that the Core Personal Consumption Expenditures (PCE) Price Index, the Fed's favourite measure of inflation, inched higher to 4.7% on a yearly basis in April, compared to the market expectation of 4.6%. Read more ...
GBP/USD Price Analysis: Cable buyers approach 1.2400 resistance confluence
GBP/USD pares monthly losses, the first in three, around 1.2360 during early Monday as markets in the UK and the US are off for the Memorial Day holiday. In doing so, the Cable pair extends the previous day’s recovery from the last levels since early April as the US Dollar retreats from a multi-day high despite the Biden-McCarthy deal on debt ceiling extension.
That said, the below 50 levels of the RSI line, placed at 14, joins the 100-Exopnential Moving Average (EMA) to put a floor under the Pound Sterling pair around the 1.2300 round figure. Even so, the bearish MACD signals and the 1.2400 resistance confluence, including the 50-EMA and a two-week-old descending trend line, restrict immediate upside moves of the GBP/USD pair. Read more ...
GBP/USD outlook: Near-term action looks for clearer direction signal as daily studies are mixed
Cable is standing at the front foot at the start of the week, though recovery attempts were so far limited. Near-term action remains capped by the top of rising daily cloud for the third consecutive day, with strong upside rejection on Friday, signaling lack of strength for more significant recovery for now.
Signals on daily chart are mixed, as daily cloud top and formation of 10/55DMA bear cross (1.2404) weigh, while fading negative momentum and north-heading stochastic about break out of oversold zone, underpins. Read more ...
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