Pound Sterling Price News and Forecast: GBP/USD could struggle to stage a decisive rebound

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling could struggle to stage a decisive rebound

GBP/USD extended its slide after losing 0.9% on Thursday and touched its weakest level in nearly a month below 1.2710 early Friday. Although the pair managed to erase its daily gains, it could have a difficult time gathering momentum.

The Bank of England (BoE) announced on Thursday that it lowered the policy rate by 25 basis points to 5%. In the post-meeting press conference, BoE Governor Andrew Bailey refrained from confirming additional policy easing in the near future but failed to help Pound Sterling gather strength against its rivals.

GBP/USD outlook: Remains in red but bears face headwinds from daily cloud top

Cable remains in red in early Friday, following Thursday’s 0.9% drop (the biggest daily loss since Apr 10) as fresh risk aversion deflated sterling.

Bears extended to one-month low but find a footstep at 1.2706 (top of thick ascending daily cloud) and may pause here, as daily studies are becoming oversold and strong negative momentum started to fade. Read more...

GBP/USD depreciates toward 1.2700 due to increased risk-off mood, BoE rate cut

GBP/USD extends its losses following the Bank of England‘s (BoE) decision to deliver a broadly expected 25-basis point rate cut at its August meeting held on Thursday. The GBP/USD pair trades around 1.2720 during the Asian session on Friday.

BoE Governor Andrew Bailey explained the decision to reduce the policy rate to 5% and addressed media questions. Bailey noted that the increase in the minimum wage has not been detrimental from their viewpoint. According to Bailey, while firms often cite higher minimum wages as compressing pay scales, the overall inflation trajectory, including upside risks, is now closer to the 2% target compared to the median forecast. Read more...

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EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.