Pound Sterling Price News and Forecast: GBP/USD depressed near five-week low under 1.2300

FXStreet Team FXStreet

GBP/USD Price Analysis: Depressed near five-week low under 1.2300

GBP/USD maintains the late-US session range between 1.2210 and 1.2245 while trading around 1.2235 during the initial Asian session on Thursday. Even so, the pair carries its downside break of an ascending trend line from March 24. As a result, sellers remain hopeful to target 1.2130 support comprising March 18 top and March 27 low.

However, the pair’s further downside could make the Cable vulnerable to plunge towards March 20 top surrounding 1.1935. Alternatively, the pair’s pullback moves beyond the support-turned-resistance line of 1.2285 will have 10-day EMA and a two-week-old descending trend line, respectively around 1.2330 and 1.2355, as following upside barriers.

GBP/USD Forecast: Bears eyeing a break of 1.2170

The GBP/USD pair surged intraday to 1.2339 but ended up collapsing to 1.2209 afresh monthly low. The UK macroeconomic figures came in mixed, as Manufacturing Production plunged by 4.6% in March, while Industrial Production declined by 4.2%, both better than anticipated, although still indicating a steep contraction. Same happened with economic growth, as the UK economy contracted 2.0% in the three months to March, better than the -2.5% expected. The Goods Trade Balance, in the meantime, posted a deficit £ 12.508 B in March, much worse than anticipated. The later decline of the pair was the result of the resurgent dollar’s demand. The UK won’t release macroeconomic data this Thursday.

EUR/USD struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.

GBP/USD tests key moving averages as growth downgrade weighs

GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average, with this week's one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.