GBP/USD Forecast: Additional losses likely if 1.2300 support fails

GBP/USD has been having difficulty gaining traction after closing in negative territory on Tuesday. 1.2300 aligns as key support for the pair and a four-hour close below that level could open the door for further losses.

Although the US Dollar struggled to gather strength on Tuesday, GBP/USD stayed on the back foot with the Pound Sterling losing interest following the disappointing PMI data that reminded investors of the UK's gloomy growth outlook. According to Reuters, traders are now fully pricing in a 25 basis points Bank of England rate cut in 2023. Read more...

GBPUSD

GBP/USD consolidates in a range, holds above 1.2300 mark amid subdued USD demand

The GBP/USD pair struggles to gain any meaningful traction on Wednesday and oscillates in a narrow band through the early part of the European session. Spot prices hold above the 1.2300 mark, though remain well within the striking distance of a one-week low touched on Tuesday.

A softer risk tone benefits the US Dollar's relative safe-haven status against its British counterpart and turns out to be a key factor acting as a headwind for the GBP/USD pair. The USD bulls, however, seem reluctant amid firming expectations for a less aggressive policy tightening by the Fed. In fact, the markets have been pricing in a greater chance of a smaller 25 bps Fed rate hike in February. This, in turn, should keep a lid on any meaningful upside for the greenback. Read more...

GBP could struggle as markets expect too much from the BoE – CIBC

Markets are likely expecting too much tightening from the BoE this year, eliminating any GBP upside in the next few quarters, in the view of economists at CIBC Capital Markets.

“The bank looks set to extend the run of policy tightening to ten straight BoE gatherings; remember, they began the cycle in December 2021. However, we anticipate the current 102 bps of hikes priced for 2023, the market is pricing a terminal rate of almost 4.50%, remains too aggressive.” Read more...

GBP/USD

Overview
Today last price 1.2318
Today Daily Change -0.0017
Today Daily Change % -0.14
Today daily open 1.2335
 
Trends
Daily SMA20 1.2174
Daily SMA50 1.2132
Daily SMA100 1.1741
Daily SMA200 1.1972
 
Levels
Previous Daily High 1.2414
Previous Daily Low 1.2263
Previous Weekly High 1.2436
Previous Weekly Low 1.2169
Previous Monthly High 1.2447
Previous Monthly Low 1.1992
Daily Fibonacci 38.2% 1.2321
Daily Fibonacci 61.8% 1.2356
Daily Pivot Point S1 1.2261
Daily Pivot Point S2 1.2187
Daily Pivot Point S3 1.211
Daily Pivot Point R1 1.2412
Daily Pivot Point R2 1.2488
Daily Pivot Point R3 1.2562

 

 

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