Pound Sterling Price News and Forecast: GBP trades cautiously as BoE dovish bets tick higher [Video]

FXStreet Team FXStreet

Pound Sterling trades cautiously as BoE dovish bets tick higher

The Pound Sterling (GBP) trades with caution against its major peers on Friday, faces pressure from weak United Kingdom (UK) S&P Global/CIPS Manufacturing PMI data for December. On Thursday, the final PMI report showed that activity in the manufacturing sector contracted at a faster pace to 47.0 compared to the preliminary reading of 47.3. The report showed that the downturn was widespread in nature, with similarly sharp rates of decline across the consumer, intermediate, and investment goods industries.

Rob Dobson, Director at S&P Global Market Intelligence said, "Business sentiment is now at its lowest for two years, as the new Government's rhetoric and announced policy changes dampen confidence and raise costs at UK factories and their clients alike. SMEs are being especially hard hit during the latest downturn." Read more...

Elliott Wave view: GBP/USD short term remains bearish [Video]

Short Term Elliott Wave view in GBPUSD suggests decline from 12.6.2024 high is in progress as a 5 waves impulse. Down from 12.6.2024 high, wave ((i)) ended at 1.247 and wave ((ii)) rally ended at 1.261 as the 45 minutes chart below shows. Pair has turned lower in wave ((iii)) with internal subdivision as another impulse. Down from wave ((ii)), wave i ended at 1.2548 and rally in wave ii ended at 1.2588. Pair resumed lower in wave iii towards 1.2507. Wave iv rally ended at 1.2548 and wave v lower ended at 1.2498 which completed wave (i) in higher degree. Rally in wave (ii) ended at 1.2607 with internal subdivision as a zigzag.

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EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

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