Pound Sterling Price News and Forecast: GBP/USD attracts some buyers to around 1.3290

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British Pound gathers strength to near 1.3300 on Burnham’s commitment to fiscal rules, NFP data loom

The GBP/USD pair gains traction to near 1.3290 during the Asian trading hours on Thursday. The British Pound (GBP) strengthens against the US Dollar (USD) as the UK's likely next Prime Minister, Andy Burnham, has eased market concerns by pledging strict fiscal discipline. The US Nonfarm Payrolls (NFP) data for June will take center stage later on Thursday.

Burnham vowed on Monday to deliver radical change to the nation's politics by handing more power to its regions and by encouraging collaboration over argument in a 10-year mission to spur "good" growth. Traders continue to assess the political transition in the UK following Burnham's emergence as the next leader. Read more...

Pound Sterling claws off the floor and finds a ceiling

Pound Sterling has spent the past week fighting for every pip, and the effort is starting to show its limits. After bottoming near 1.3150 in late June, GBP/USD has clawed back toward the 1.3300 area, only to run into a ceiling formed by its 50-day and 200-day Exponential Moving Averages (EMA), now stacked one atop the other overhead. The Stochastic Relative Strength Index (Stoch RSI) has rolled over from higher levels, a sign the bounce is tiring before it has cleared any real hurdle.

The distinction between a recovery and a reversal is the whole question here. Moving off a low is not the same as building strength; a market that has fallen far enough will always attract some buying, and that is most of what the past week represents. With both major averages sloping lower and price still trapped beneath them, the path of least resistance points sideways to lower until the Pound proves otherwise with a close above the ceiling. Read more...

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