Pound Sterling Price News and Forecast: GBP/USD holds ground after UK inflation data

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling holds ground after UK inflation data

After falling to a fresh eight-day low near 1.3460 in the Asian session on Wednesday, GBP/USD recovered to the 1.3500 area in the European trading hours. The pair's technical outlook, however, doesn't yet offer any convincing signs of an extended recovery.

The broad-based US Dollar (USD) strength amid a risk-averse market environment caused GBP/USD to stretch lower on Tuesday and early Wednesday, before Pound Sterling found support on July inflation data from the UK. Read more...

GBP/USD Forecast: Pound Sterling struggles to attract buyers

GBP/USD stretched lower in the Asian session on Tuesday and touched its lowest level in a week below 1.3500 before staging a rebound. The pair's near-term technical outlook suggests that investors refrain from placing themselves for an extended recovery.

The renewed US Dollar (USD) strength on souring market mood caused GBP/USD to turn south at the beginning of the week. However, headlines coming out of the meeting between United States (US) President Donald Trump and Ukrainian President Volodymyr Zelenskyy helped geopolitical tensions ease, limiting the USD's gains. Read more...

GBP/USD keeps August rally on pause

GBP/USD is trading quietly ahead of a busy UK data calendar, consolidating between the recent high of 1.3580 and the 50-day simple moving average (SMA) at 1.3500.

So far, August has been favorable for the pair, with the price climbing more than 3% from the low of 1.3139, largely driven by a weaker US dollar. Stronger-than-expected UK GDP growth figures failed to negate the bearish head-and-shoulders pattern, leaving attention now on upcoming CPI inflation, S&P Global business PMIs, and retail sales. These releases could provide fresh insight into whether a pause in the BoE’s rate-cut cycle is possible in the coming months. Read more...

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