Pound Sterling Price News and Forecast: GBP/USD could face strong resistance at 1.2270

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling could face strong resistance at 1.2270

After losing more than 0.5% on Friday, GBP/USD gains traction at the beginning of the week and trades in positive territory above 1.2200. In the absence of high-impact data releases, comments from Donald Trump at his inauguration ceremony will be watched closely by market participants.

The US Dollar remains under bearish pressure in the European session, helping GBP/USD stretch higher. Investors remain optimistic about Trump refraining from introducing an aggressive trade policy later in the day. In a social media post over the weekend, Trump noted he had a call with Chairman Xi Jinping of China. "It is my expectation that we will solve many problems together, and starting immediately," Trump said. Read more...

GBP/USD Weekly Outlook: US President Trump means fresh challenges for Pound Sterling

This week, it was all about the inflation data from the United Kingdom (UK) and the United States (US). However, the US inflation data-led renewed dovish expectations surrounding the Federal Reserve (Fed) fuelled a sustained correction in the USD and the US Treasury bond yields from over one-year highs. The broad US Dollar softness allowed the GBP/USD pair to sigh relief after hitting a fresh 14-month low at 1.2100 to begin the week.

Earlier in the week, the US Consumer Price Index (CPI) rose in line with estimates at an annual rate of 2.9% in December from November's 2.7%. However, core CPI, which excludes food and energy prices, rose by 3.2%, below forecasts of 3.3%. Meanwhile, the US annual Producer Price Index (PPI) rose 3.3% in December, missing the expected 3.4% growth. Read more...

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