Pound Sterling Price News and Forecast: GBP/USD bears flirt with monthly low

GBP/USD Price Forecast: Bears flirt with monthly low, near 1.3480-1.3470 confluence

The GBP/USD pair comes under heavy selling at the start of a new week and drops to the lower end of its monthly range, near the 1.3480 region during the first half of the European session. The intraday decline is sponsored by a broadly firmer US Dollar (USD), though bearish traders might refrain from placing aggressive bets ahead of key central bank events this week.

The US Federal Reserve (Fed) is scheduled to announce its decision at the end of a two-day policy meeting on Wednesday, which will be followed by the Bank of England (BoE) meeting on Thursday. The market focus, meanwhile, would be on central banks' policy outlook, which, in turn, would provide some meaningful impetus to the GBP/USD pair and help in determining the next leg of a directional move. Read more...

British Pound/US Dollar rebounds from 1 (100%) Arc – Potential decline toward 1.3480

Overview: Based on Arc Cycle Analysis applied to the 1h chart, British Pound / U.S. Dollar has rebounded from the 1 (100%) Resistance Arc within the current Arc Cycle. The rebound confirms a bearish reaction and opens the potential for continued movement toward the next Support Arc.

Price has rebounded from the 1 (100%) Resistance Arc, confirming that the Arc continues to act as a primary resistance boundary within the current Arc Cycle. Continued bearish momentum could drive price toward the next Support Arc at 1.3480 (0.786 Target Arc). Read more...

British Pound weakens to near 1.3500 on Fed hike bets

The GBP/USD pair declines to near 1.3505 during the early European session on Monday. The US Dollar (USD) strengthens against the British Pound (GBP) as traders pondered possible rate hikes from the Federal Reserve (Fed) later on Wednesday. On Thursday, attention will shift to the Bank of England (BoE) interest rate decision. 

Traders ramped up bets for a Fed rate hike after data on Friday showed US Consumer Price Index (CPI) inflation accelerated in August. According to the CME FedWatch tool, financial markets have priced in nearly an 86.7% chance of a quarter-point rate hike at the Fed's September meeting, up from 72% before the US PPI data. Read more...