Pound Sterling Price News and Forecast: GBP trades flat while US Midterm Elections take centre stage

British Pound trades flat while US Midterm Elections take centre stage

The British Pound (GBP) trades almost flat at around 1.3410 against the US Dollar (USD) during the European trading session on Tuesday. The GBP/USD pair consolidates as investors shift their focus to United States (US) Midterm Elections, which will begin later in the North American session.

Analysts at Deutsche Bank describe today’s US midterm elections as “the main event,” noting that voters will decide the entire House of Representatives, a third of the Senate, and 36 state Governors. Read more...

British Pound/US Dollar faces rejection at 0.5 Arc – Potential decline toward 1.3322

Based on Arc Cycle Analysis applied to the 4h chart, British Pound / U.S. Dollar is interacting with the 0.5 Resistance Arc within the current Arc Cycle. Bullish momentum is fading near this boundary, and a failure to break above the Arc could trigger a downside rebound toward 1.3322.

The 0.5 Arc continues to act as a resistance boundary, capping upside expansion. Bullish attempts are struggling beneath the Resistance Arc, and the market may fail to break above it. Read more...

GBP/USD Price Forecast: Holds steady above 1.3400, retains constructive tone above key support

The GBP/USD pair trades on a flat note near 1.3405 during the early European trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of the key events later this week, including the US midterm elections, the Bank of England (BoE) interest rate decision and US September jobs data.

The BoE is expected to raise the Bank Rate to 4.0% from 3.75% at its November policy meeting on Thursday. This would be its first hike since August 2023, when inflation was still more than the BoE’s 2% target. ING analysts said that after Thursday's expected rate hike, a follow-up hike from the BoE in February is also likely, but said that market pricing for BoE rate hikes "looks extreme.” Read more..