British Pound Sterling Price News and Forecast: GBP/USD has room to rally

FXStreet Team FXStreet

GBP/USD Analysis: Is below 1.3200

Yesterday, the GBP/USD exchange rate reversed south from the Fibo 50.00% at 1.3200. During Tuesday morning, the rate was testing the 55-hour SMA near 1.3060.

If the given support holds, it is likely that a reversal north could occur, and the currency pair could try to surpass the given Fibonacci retracement in the short term.

Otherwise, it is likely that the exchange rate could continue to decline within the following trading session. In this case it is unlikely that the rate could decline below the Fibo 38.20% at 1.2922.

UK Budget Preview: Showing the way with fiscal stimulus? GBP/USD has room to rally

Cummings' cabinet coup – that now seems like a long-forgotten tidbit of British politics – may have a decisive impact on the pound.

Earlier this year, Prime Minister Boris Johnson announced a government reshuffle, which put the relatively unknown Rishi Sunak as Chancellor of the Exchequer instead of the more fiscally-prudent Sajid Javid. Johnson and his aide Dominic Cummings wanted to bring the special advisers of the PM and the chancellor under the guidance of 10 Downing Street – unifying the government's message. Moreover, they wanted someone that will follow the vision of infrastructure spending.

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD weakens to two-week lows near 1.3520

GBP/USD trades on the back foot, returning to the low 1.3500s, or two-week troughs, on Tuesday. Cable’s bearish price action follows decent gains in the Greenback at the time when investors assess latest US data releases and the persistent uncertainty in the US-Iran crisis.

EUR/USD remains offered; breaks below 1.1600

EUR/USD now accelerates its daily correction, breaching below the key 1.1600 support level on Tuesday. The pair’s daily correction comes on the back of a decent bounce in the US Dollar despite disappointing US data releases and amid persistent geopolitical concerns.

No reaction from Gold; still targets $4,300

Gold extends Monday’s pessimism and slipped back to nearly three-week lows just above the $4,300 mark per troy ounce on Tuesday. The US Dollar’s rebound couple with rising US Treasury yields weigh on the precious metal despite tensions in the Middle East appear far from abated.

Crypto Today: Bitcoin, Ethereum, XRP struggle to extend gains despite ETF inflows

Bitcoin stalls while holding above $78,000 support as ETF inflows return. Ethereum takes a breather around $2,450 amid sustained institutional support. XRP remains pressured as the 200-day EMA provides immediate support.

Global bond market sell off haunts markets

Global sovereign bonds are selling off as we start a new month. The UK is, unsurprisingly, taking the biggest hit. Two and 10-year yields rose by 10 basis points at one point on Tuesday, and are currently higher by 7 and 8bps respectively.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.