Pound Sterling Price News and Forecast: GBP/USD flatlines near 1.3415 early European session

FXStreet Team FXStreet

GBP/USD Price Forecast: Stays capped below key 100-day SMA with UK GDP in focus

The GBP/USD pair trades on a flat note around 1.3415 during the early European trading hours on Friday. Traders prefer to wait on the sidelines ahead of the release of the monthly UK Gross Domestic Product (GDP).

The UK economy is expected to contract by 0.1% in April, compared to an expansion of 0.3% in the previous reading. If the report shows a stronger-than-expected outcome, this could underpin the British Pound (GBP) against the US Dollar (USD) in the near term. Read more...

British Pound eases from weekly high vs USD as Iran risks and UK data looms

The GBP/USD pair struggles to capitalize on the previous day's sharp intraday rally of over 100-pips and edges lower during the Asian session on Friday. Spot prices currently trade near the 1.3400 mark as investors keenly await further developments surrounding the Middle East crisis and the UK macro data dump.

US President Donald Trump said on Thursday that a deal had been reached with Iran and the final document could be signed soon, perhaps even over the weekend. The announcement provided a massive boost to the global risk sentiment, which weighed heavily on the safe-haven US Dollar (USD) and prompted aggressive intraday short-covering around the GBP/USD pair. The optimism, however, remains capped as Iran countered that it had not reached a final decision on an agreement. Read more...

British Pound Sterling banks a peace rally as the bills come due

The British Pound spent most of Thursday doing what everything else did, leaking lower while Washington and Tehran traded fire, then exploding higher when President Trump canceled the evening's planned strikes just after 17:30 GMT and declared a deal all but done. GBP/USD gained more than a full big figure off the lows, and not one pip of it was earned in the UK.

That matters more for Cable than most, because the Pound now has to defend a borrowed rally through one of the heaviest scheduled stretches on the calendar. What the geopolitical whipsaw handed over on Thursday, the data gets to question from Friday morning onward. Read more...

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