Pound Sterling Price News and Forecast: Remains at the mercy of USD price dynamics
|GBP/USD Forecast: Pressured ahead of US CPI
The GBP/USD pair nears the 1.3800 level, as the greenback retains its strength. The American currency keeps advancing on the heels of Tuesday’s news, as the US Senate passed the infrastructure bill, now in the House. Fresh financial support hints at steeper growth in the country. Hence, the dollar strengthens alongside Wall Street, with major indexes flirting with record highs.
The UK macroeconomic calendar had nothing relevant to offer this week, with the focus still 0n the US. After the country published an upbeat employment report on Friday, it will provide an inflation update today. The July US Consumer Price Index was preliminarily estimated at 5.4% YoY, now expected to be confirmed at 5.3%. Read more...
GBP/USD Analysis: Remains at the mercy of USD price dynamics, focus turns to US CPI
The GBP/USD pair struggled to preserve its modest intraday gains and finally settled in the red on Tuesday amid sustained US dollar buying interest. Investors have been pricing in the prospects for an early tapering of the Fed's massive pandemic-era stimulus amid signs of substantial further progress in the labor market recovery. This, in turn, was seen as a key factor that continued acting as a tailwind for the USD and exerted some downward pressure on the major.
Bets for an earlier action by the US central bank were further boosted by Atlantic Fed President Raphael Bostic and Boston Fed President Eric Rosengren's comments on Monday. Separately, Chicago Fed President Charles Evans said on Tuesday that the economy is on track to satisfy the Fed's threshold to begin tapering its $120 billion in monthly purchases of Treasury and mortgage bonds. Read more...
GBP/USD: The downtrend continues
The GBP/USD after reaching 1.4250 in June has entered into a bearish trend which we believe might continue into the short term. Cable recently backtested and got rejected by the 50MA strengthening our idea that is soon due to another downside. We will put our first target just above the 200MA and if the level is broken we could easily reach 1.36.
If it actually managed to fall till 1.36 we could assist at a double bottom formation, increasing the chances for a long position. Read more...
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