GBP/USD outlook: Pound remains in red ahead of appointment of Britain's new prime minister
Cable hits new 29-month low on Monday, in extension of bearish acceleration in past three weeks, a part of larger downtrend.
The pound remains under strong pressure on risk aversion, driven by growing economic and geopolitical tensions that continues to lift dollar.
Today’s top event will be appointment of the UK’s new prime minister, with wide expectations that Liz Truss, current foreign minister and front runner to replace Boris Johnson, will be named as Britain’s next PM. If appointed, Truss will face a number of huge obstacles, as the country has been in a series of crisis since 2015 when Conservatives came on power. Read more...
GBP/USD Forecast: Bearish bias stays intact below 1.1550
GBP/USD has managed to erase a large portion of its daily losses after having dropped to its weakest level since March 2020 at 1.1447 during the Asian trading hours on Monday. As investors wait for the Chairman of the 1922 Committee to announce the new British Prime Minister, the pair stays below 1.1500. The near-term technical outlook points to oversold conditions but sellers are likely to dominate the action unless 1.1550 turns into support.
The negative shift witnessed in risk sentiment amid the deepening energy crisis in the euro area provided a boost to the greenback and weighed on GBP/USD. Read more...
GBP/USD: Sellers to dominate the action unless 1.1550 turns into support
GBP/USD has managed to erase a large portion of its daily losses after having dropped to its weakest level since March 2020. But bearish bias stays intact below 1.1550, FXStreet’s Eren Sengezer reports.
“Liz Truss is widely expected to win the Conservative Party leadership race. The market action is likely to be muted because participants want to see what the new PM will do to help households amid surging energy costs. Moreover, Brexit remains an unresolved issue that is likely to make it difficult for the pound to stage a decisive rebound.” Read more...
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