Pound Sterling Price News and Forecast: GBP/USD bulls accelerate for the second straight day

FXStreet Team FXStreet

GBP/USD outlook: Bulls accelerate for the second straight day and approach strong barriers

Cable continues to trend higher and nears key near-term barriers at 1.3588 (July 24 high) and 1.3618 (daily Ichimoku cloud top). Weaker dollar on fresh signals of Fed rate cuts (the first cut to be expected in September) and latest data from UK labor sector, which do not urge BoE for immediate rate cuts, provided good support for sterling in last two sessions.

Break above psychological 1.3500 barrier (reinforced by 55DMA) and 1.3541 (Fibo 61.8% of 1.3788/1.3141) generated fresh bullish signal (to be confirmed on close above the latter). Read more...

GBP/USD Forecast: Pound Sterling ignores overbought conditions

GBP/USD gained traction and rose about 0.5% on Tuesday. The pair preserves its bullish momentum on Wednesday and trades at its highest level in three weeks above 1.3550. Although the technical outlook highlights overbought conditions, a technical correction could be delayed unless there is a negative shift in risk sentiment.

The broad-based selling pressure surrounding the US Dollar (USD) fuelled GBP/USD's rally on Tuesday, as investors saw the July inflation data as a confirmation of a dovish Federal Reserve (Fed) policy outlook in the remainder of the year. Read more...

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EUR/USD extends losses toward 1.1600 ahead of EU inflation data

EUR/USD extends the decline toward 1.1600 in the European session on Tuesday. The pair remains under pressure as surging energy prices amid the US-Iran war have increased the risks of higher inflation for the Old Continent. The focus is now on the Eurozone preliminary inflation reading for February.

GBP/USD drops back toward three-month lows below 1.3350

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Stellar risks deeper losses as derivatives metrics turn negative

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The market is not panicking it is repricing the probability distribution of Oil and time

At the end of the day, markets do not trade morality or geopolitics. They trade transmission channels. And the only channel that truly matters in this maelstrom runs through the price of energy and the time value of money.

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