Pound Sterling Price News and Forecast: GBP/USD – Consolidation to precede fresh weakness

FXStreet Team FXStreet

GBP/USD Forecast: 1.2500 proves to be a tough resistance to crack

After losing more than 100 pips in a three-day slide, GBP/USD corrected higher in the Asian session on Friday. The pair, however, lost its momentum near 1.2500, highlighting the importance of this technical level.

The US Dollar preserved its strength on Thursday and forced GBP/USD to stay on the back foot after the weekly data published by the Department of Labor revealed that the Initial Jobless Claims declined to 216,000 from 229,000. Read more...

GBP/USD outlook: Consolidation to precede fresh weakness

GBPUSD is taking a breather at 1.2500 zone as larger bears face headwinds on approach to pivotal 200DMA support (1.2425). Bounce from Thursday’s new multi-week low (1.2445) was so far limited and unable to sustain gains above 1.2500 mark, suggesting that bears hold grip.

Weekly close below cracked 100WMA (1.2521) will deliver initial bearish signal, with close below 1.2482 (Fibo 23.6% of 1.0348/1.3141) to strengthen bearish structure for break through 200DMA, which would spark fresh acceleration and expose next key support at 1.2307 (May 25 trough). Read more...

Pound Sterling struggles to sustain recovery due to cooling labor market

The Pound Sterling (GBP) discovered intermediate support as investors started digesting the potential risks of global economic turmoil due to restrictive monetary policy by Western central bankers. The GBP/USD pair finds an intermediate cushion, but the broader bias remains bearish as investors expect that policy divergence between the Federal Reserve (Fed) and the Bank of England (BoE) may not vanish this month.

BoE policymaker Swati Dhingra warned that current monetary policy is “sufficiently restrictive” and that more hikes could hurt the UK economy. The narrative of keeping interest rates steady in coming months got support from BoE Governor Andrew Bailey, who conveyed that the interest rate peak is near. Read more...

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