Pound Sterling Price News and Forecast: GBP/USD consolidates its recent downfall to a nearly one-month trough

FXStreet Team FXStreet

GBP/USD hangs near multi-week low, oscillates in a range just above 1.2700 ahead of BoE

The GBP/USD pair enters a bearish consolidation phase during the Asian session on Thursday and oscillates in a narrow range just above a nearly one-month low, around the 1.2680 region touched the previous day. Spot prices currently trade around the 1.2700 mark as traders seem reluctant to place aggressive bets and prefer to wait for the latest monetary policy update from the Bank of England (BoE), due later today.

A sharp deceleration in the headline UK CPI, to the 7.9% YoY rate in June from the 8.7% previous, might force the UK central bank to revert to a smaller 25 bps lift-off. The move will push the benchmark rate to 5.25%, or the highest level since December 2007. That said, some investors are anticipating another 50 bps rate hike as the inflation is still significantly above the BoE's 2% target. Hence, the focus will remain glued to the accompanying monetary policy statement and the post-meeting press conference. Against the backdrop of the recent swings in expectations about the future rate-hike path, the outlook will play a key role in influencing the British Pound and provide a fresh directional impetus to the GBP/USD pair. Read more...

GBP/USD Price Analysis: Aims toward 1.2700 after a break of ascending channel

GBP/USD breaks below the bottom of an ascending channel, ahead of the Bank of Englan’s (BoE) monetary policy decision on Thursday, as the pair aims toward the 1.2700 psychological figure. As the Asian session commences, the GBP/USD is exchanging hands at 1.2715, posting minuscule gains of 0.04%.

The GBP/USD is neutral to downward biased, as the daily chart depicts, as the pair dropped on Wednesday’s session below the 50-day Exponential Moving Average (EMA) at 1.2742. In addition, the GBP/USD extended its fall below the bottom of the ascending channel, opening the door for further losses. That, alongside the Relative Strength Index (RSI) indicator turning bearish, could pave the way for a drop below 1.2700. Nevertheless, the three-day Rate of Change (RoC) portrays a slight divergence with price action, suggesting that the 1.2700 psychological level might hold in the near term. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD rebounds after falling toward 1.1700

EUR/USD gains traction and trades above 1.1730 in the American session, looking to end the week virtually unchanged. The bullish opening in Wall Street makes it difficult for the US Dollar to preserve its recovery momentum and helps the pair rebound heading into the weekend.

GBP/USD steadies below 1.3400 as traders assess BoE policy outlook

Following Thursday's volatile session, GBP/USD moves sideways below 1.3400 on Friday. Investors reassess the Bank of England's policy oıtlook after the MPC decided to cut the interest rate by 25 bps by a slim margin. Meanwhile, the improving risk mood helps the pair hold its ground.

Gold stays below $4,350, looks to post small weekly gains

Gold struggles to gather recovery momentum and stays below $4,350 in the second half of the day on Friday, as the benchmark 10-year US Treasury bond yield edges higher. Nevertheless, the precious metal remains on track to end the week with modest gains as markets gear up for the holiday season.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid bearish market conditions

Bitcoin (BTC) is edging higher, trading above $88,000 at the time of writing on Monday. Altcoins, including Ethereum (ETH) and Ripple (XRP), are following in BTC’s footsteps, experiencing relief rebounds following a volatile week.

How much can one month of soft inflation change the Fed’s mind?

One month of softer inflation data is rarely enough to shift Federal Reserve policy on its own, but in a market highly sensitive to every data point, even a single reading can reshape expectations. November’s inflation report offered a welcome sign of cooling price pressures.

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.