Pound Sterling Price News and Forecast: GBP/USD tests the key 1.3400 psychological pivot

FXStreet Team FXStreet

GBP/USD tests the key 1.3400 psychological pivot

On the four-hour execution continuum, GBP/USD (Pound Sterling vs US Dollar) is undergoing a controlled corrective pullback toward the 1.3400 structural pivot. This retracement follows an aggressive directional rally that carried price to the 1.3530 coordinate, where the market collided directly with a monumental overhead liquidity barrier.

Rather than signaling an institutional trend reversal, the current retreat reflects a classic volume-absorption sequence. Short-term speculative buyers are taking profit, while aggressive market sellers are driving price into a dense shelf of resting institutional limit bids positioned between 1.3360 and 1.3410. Read more...

British Pound flatlines near mid-1.3400s vs softer USD – Looks to US NFP for fresh impetus

The GBP/USD pair attracts some dip-buyers during the Asian session on Friday, stalling the previous day's retracement slide from levels just above the 1.3500 psychological mark, or its highest level since mid-September. Traders, however, seem hesitant to place aggressive bets ahead of the release of the crucial US monthly employment details, with spot prices currently trading just above 1.3450, up only 0.05% for the day.

The popularly known US Nonfarm Payrolls (NFP) report will play a key role in influencing market expectations about the US Federal Reserve's (Fed) move in December, which, in turn, will drive US Dollar (USD) demand and provide a fresh impetus to the GBP/USD pair. Heading into the key data risk, the recent slump in US bond yields and hopes for Iran diplomacy keep the safe-haven USD on the back foot, offering some support to the currency pair. Read more...

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