GBP/USD Forecast: Pound Sterling needs to reclaim 1.2200 to attract bulls
GBP/USD has gone into a consolidation phase at around 1.2150 mid-week after having registered modest losses on Monday and Tuesday. In case the pair rises above 1.2200 and starts using that level as support, additional buyers could come into play and open the door for another leg higher.
The risk-averse market atmosphere helped the US Dollar outperform its rivals on Tuesday and caused GBP/USD to continue to push lower. Early Wednesday, US stock index futures are little changed on the day and the UK's FTSE 100 Index is moving sideways near Tuesday's closing level, pointing to a neutral market mood. Read more...
GBP/USD climbs to fresh daily high, around 1.2175-80 area amid modest USD weakness
The GBP/USD pair shows some resilience below a technically significant 200-day Simple Moving Average (SMA) and attracts some buyers near the 1.2100 mark on Wednesday. The intraday uptick pushes spot prices to a fresh daily high, around the 1.2175-1.2180 region during the mid-European session, though any meaningful positive move seems elusive.
The US Dollar struggles to find acceptance above the very important 200-day SMA and for now, seems to have stalled this week's goodish recovery move from over a five-month low. This, in turn, is seen as a key factor acting as a tailwind for the GBP/USD pair. Meanwhile, the intraday USD pullback from a fresh weekly high lack any obvious fundamental catalyst and is likely to remain limited amid hawkish Fed expectations. Read more...
GBP/USD set return to the 1.19 area – ING
GBP/USD stays on the back foot and continues to stretch lower toward 1.2100. Economists at ING expect the pair to trade back to the 1.19 zone.
“If we are turning to a more macro-led trading environment, then Sterling should underperform.”
“A Fed staying hawkish into a recession should see equity markets come under renewed pressure. Typically, this is a negative environment for Sterling, where the UK's large current account deficit is penalised.”
“GBP/USD has turned from a strong resistance level at 1.23 and our bias into next week would be for a return to the 1.19 area.” Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.