Pound Sterling Price News and Forecast: GBP/USD – Brexit, virus strain sterling

FXStreet Team FXStreet

GBP/USD Outlook: Bears trying to seize control amid Brexit/Covid woes, US CPI in focus

The GBP/USD pair struggled to capitalize on its intraday positive move and witnessed a dramatic turnaround on Wednesday in the wake of fresh Brexit jitters. The pair gained some traction after the Bank of England Chief Economist, Andy Haldane warned about rising inflationary pressures and added that the central bank might need to turn off the tap of its huge monetary stimulus. Bulls, however, struggle to capitalize on the move and failed ahead of the 1.4200 mark amid concerns about souring UK-EU relations. Read more...

GBP/USD Forecast: Brexit, virus strain sterling, critical support breached, US data eyed

The highest number of COVID-19 cases since February – the Delta virus variant is spreading fast, making the UK's last reopening stage less and less likely. While Britain is a world leader in vaccination, this strain first identified in India is finding its way to those not fully immunized. The highly anticipated "Freedom Day" will likely be postponed from June 21 to early July.

Economic damage from the delayed return to normal is joined by threats of quota tariffs from the EU. Brussels and London remain at loggerheads over the implementation of the Northern Irish protocol and tensions are mounting. Maroš Šefčovič, the EU´s Brexit point-person, said that his patience is running thin. Read more...

Technical analysis: Will the GBP/USD retreat continue?

The GBPUSD technical analysis of the price chart on a 1-hour timeframe shows GBPUSD: H1 is rebounding to test the 200-period moving average MA(200) which is declining. We believe the bullish momentum will continue after the price breaches above the upper bound of the Donchian channel at 1.4154. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1.4072. After placing the order, the stop loss is to be moved to the next fractal low, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. Read more...

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EUR/USD hits fresh 2026 lows near 1.1570

EUR/USD adds to Monday’s heavy losses and reaches new yearly lows around 1.1570 on Tuesday. The pair’s deep pullback comes as the US Dollar extend its strong bounce, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold drops further, threatens $5,000

Gold comes under renewed and marked selling pressure on Tuesday, dangerously approaching the critical $5,000 mark per troy ounce, reversing at the same time four consecutive daily advances. The yellow metal’s bearish tone comes on the back of the increasing demand for the Greenback and investors’ repricing of Fed rate cuts.