GBP/USD Forecast: Pound unlikely to go back into uptrend after BOE's gloomy outlook
After having declined to its lowest level in nearly a week at 1.2065 on Thursday, GBP/USD has staged a rebound and settled above 1.2100. Nevertheless, the pair could find it difficult to gather further recovery momentum following the Bank of England's (BOE) remarks on the economic outlook.
As expected, the BOE hiked its policy rate by 50 basis points to 1.75% at its August policy meeting. The bank, however, noted that it was now projecting to the UK economy to go into recession in the fourth quarter of the year and continue to contract throughout 2023. Commenting on the policy outlook, "50 bps rate rise today does not mean we are now moving to a pre-determined path of raising rates by 50 bps per meeting," BOE Governor Bailey said and added that all options were on the table for the September meeting and beyond. Read more...
Could GBP/USD fall towards its support level at around 1.2020?
Looking at GBPUSD’s chart, we can see that it is traded at the rate of around 1.213, up from yesterday’s drop level of below 1.2080, which was caused after the announced BOE interest rate. Today if it manages to hold the rate above 1.2080, then we could see it rising towards its resistance level at around 1.2180 otherwise it should fall towards its support level at around 1.2020. Read more...
GBP/USD drops hard to fresh session lows following a hot Nonfarm Payrolls report, doubling market expectations
On the back of the US Nonfarm Payrolls that have come in at the hotter end of expectations, the US dollar has rallied, weighing heavily on its peers, including sterling.
GBP/USD has dropped to test the lows of the day on the knee-jerk. GBP/USD had been trading between a 45 pip box during the London morning between 1.2170 and 1.2125 ahead of the data, setting a meanwhile range for the day ahead, but bears are penetrating this box to the downside with a potential bearish breakout below 1.2050 now on the cards. Read more...
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