GBP/USD Forecast: Pound Sterling to face strong resistance at 1.2140
GBP/USD has gathered recovery momentum and advanced toward 1.2100 after having dropped below 1.2000 for the first time in a month on Tuesday. Market participants will keep a close eye on risk perception and Fedspeak in the absence of high-impact macroeconomic data releases.
The broad-based US Dollar strength caused GBP/USD to extend its slide during the first half of the day on Tuesday. Minneapolis Federal Reserve (Fed) President Neel Kashkari told CNBC that his terminal rate projection was still 5.4% following the upbeat January jobs report and didn't allow GBP/USD to gain traction. Read more...
GBP/USD climbs to fresh weekly top, around 1.2100 mark amid notable USD supply
The GBP/USD pair builds on the overnight bounce from the vicinity of the 200-day SMA support and gains some follow-through traction for the second straight day on Wednesday. Spot prices climb to a fresh weekly high during the early part of the European session, with bulls now looking to extend the momentum further beyond the 1.2100 round-figure mark.
The US Dollar comes under some renewed selling pressure amid a modest downtick in the US Treasury bond yields and turns out to be a key factor acting as a tailwind for the GBP/USD pair. Fed Chair Jerome Powell failed to offer fresh hawkish signals on Tuesday and reiterated that the process of disinflation was underway. This, in turn, raises hopes that interest rates may not rise much further, which, in turn, exerts some downward pressure on the US bond yields and undermines the Greenback. Read more...
GBP/USD: Gains to pick up through low-1.21s – Scotiabank
GBP/USD stages bull reversal. Gains through the low/mid-1.21 area should see Cable pick up a little more momentum, economists at Scotiabank report.
“Cable formed bullish key reversal session yesterday (new low, higher close and higher high relative to Monday), strongly signaling a reversal in the pound’s recent slide.”
“Intraday gains are struggling a little around the 1.21 point but modest dips are likely to be taken advantage of by buyers.”
“Gains through the low/mid-1.21 area should see the GBP pick up a little more momentum in the next few days.” Read more...
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