GBP/USD Forecast: Pound Sterling needs to hold above 1.2500 to keep bulls interested
GBP/USD has gathered recovery momentum and climbed above 1.2500 early Wednesday after having closed the first two days of the week in negative territory. 1.2500 aligns as a key level for the pair but investors could ignore technical developments while assessing the impact of the Federal Reserve's (Fed) policy announcements on the US Dollar's (USD) valuation and risk sentiment.
Although the USD came under renewed selling pressure during the American trading hours on Tuesday, the risk-averse market atmosphere didn't allow GBP/USD to gain traction. Reviving fears over a deepening banking crisis in the US following the collapse of First Republic Bank earlier in the week forced investors to seek refuge and triggered a sharp decline in the US Treasury bond yields on Tuesday. Read more ...
GBP/USD Price Analysis: Fades bounce off 100-SMA but bullish bias remains intact beyond 1.2400
GBP/USD portrays pre-Fed consolidation near 1.2490 as it retreats from its intraday high heading into Wednesday’s London open. Even so, the Cable pair remains firmer for the first day in three. That said, the quote’s latest pullback could be linked to the bearish MACD signals, apart from the cautious mood ahead of the Federal Open Market Committee (FOMC) monetary policy meeting announcements.
However, the GBP/USD pair’s sustained trading beyond the 100-SMA and an ascending support line from April 21, respectively near 1.2460 and 1.2440, keeps the buyers hopeful. Even if the Cable pair breaks the 1.2440 trend line support, the 200-SMA level of around the 1.2400 threshold can prod the GBP/USD bears. Read more ...
GBP/USD sticks to gains above 1.2500 amid weaker USD, traders keenly await FOMC decision
The GBP/USD pair regains positive traction on Wednesday and snaps a two-day losing streak to a nearly one-week low, around the 1.2435 region touched the previous day. The pair maintains its bid tone through the first half of the European session and is currently placed near the top end of its daily range, just above the 1.2500 psychological mark.
The US Dollar (USD) drifts lower for the second successive day and retreats further from a three-week high touched on Tuesday, which, in turn, is seen as a key factor pushing the GBP/USD pair higher. The overnight release of the US Job Openings and Labor Turnover Survey (JOLTS) indicated that the ultra-tight US job market is loosening. Apart from this, concerns over the US debt ceiling, along with renewed fears of a full-blown banking crisis, drag the US Treasury bond yields lower and continue to weigh on the Greenback. Read more ...
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