GBP/USD Forecast: Pound turns neutral following bearish correction
GBP/USD has started to move sideways in a relatively tight range at around 1.1300 after having snapped a six-day winning streak on Wednesday. The near-term technical outlook suggests that the pair is likely to stay in a consolidation stage and investors could refrain from making large bets ahead of Friday's highly-anticipated US jobs report.
On Wednesday, the risk-averse market environment helped the dollar gather strength against its rivals. In the second half of the day, the US Dollar Index (DXY) continued to push higher after the monthly report published by the ADP revealed that employment in the US private sector rose more than expected in September. Additionally, the ISM's Services PMI survey showed that employment in the service sector continued to expand and input price inflation continued to rise at a strong pace in September. Read more...
GBP/USD Price Analysis: Flirts with 1.1235-40 confluence, bearish flag spotted on H4
The GBP/USD pair meets with a fresh supply following an uptick to the 1.1385 region and turns lower for the second successive day on Thursday. The downtick drags spot prices to mid-1.1200s, closer to the overnight swing low during the mid-European session and is sponsored by the emergence of some US dollar dip-buying.
Several Fed officials reaffirmed the US central bank's commitment to bring inflation under control and the prospects for another supersized 75 bps lift-off in November. This remains supportive of elevated US Treasury bond yields, which, along with growing recession fears, continue to act as a tailwind for the safe-haven greenback. Read more...
GBP/USD set to dip below 1.10 in the near-term – ING
Economists at ING analyze the outlook for the British pound. They see prevalent downside risks and expect GBP/USD to sink towards 1.10. Meanwhile, EUR/GBP is set to trade above 0.87 .
“We mostly see downside risks for cable from current levels, and expect a drop below 1.10 in the near-term.”
“In EUR/GBP, 0.8700 may emerge as an increasingly solid floor over the coming weeks.” Read more...
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