Pound Sterling Price News and Forecast: GBP/USD forecast – Pound Sterling remains fragile

FXStreet Team FXStreet

GBP/USD to remain above 50 day moving average until US debt ceiling crisis resolved

In March, the value of the British pound reached a low of 1.18 against the US dollar, which strengthened after Federal Reserve Chair Jerome Powell commented that higher interest rates are needed to control inflation.

However, a few days later, the Silicon Valley Bank (SVB) collapsed, which began the ‘2023 Banking Crisis’. This weakened the USD, as investors theorised that the Federal Reserve would need to cut rates to avoid deepening the crisis. As a result, the GBP has been increasing in value against the USD since then. Read more ...

GBP/USD Forecast: Pound Sterling remains fragile

GBP/USD has lost its traction in the early European morning on Tuesday and touched its lowest level in a month, slightly below 1.2400. The pair's near-term technical outlook suggests that sellers retain control. Bank of England (BoE) Governor Andrew Bailey will testify on monetary policy before the UK Treasury Select Committee and investors will continue to pay close attention to risk sentiment.

Following Monday's face-to-face meeting, US President Joe Biden and House Speaker Kevin McCarthy failed to reach a deal to lift the government's $31.4 trillion debt limit, causing markets to remain cautious. Early Tuesday, US stock index futures trade mixed and a negative shift in market mood in the second half of the day could allow the US Dollar (USD) to preserve its strength. Read more ...

GBP/USD drops to over one-month low, further below 1.2400/50-day SMA on weaker UK PMIs

The GBP/USD pair comes under some renewed selling pressure on Tuesday and drops to over a one-month low during the first half of the European session. The pair is currently placed just below the 1.2400 round-figure mark, down around 0.35% for the day, confirming a fresh breakdown through the 50-day Simple Moving Average (SMA).

A combination of factors lifts the US Dollar (USD) back closer to its highest level since March 20 touched last Friday, which, in turn, is seen dragging the GBP/USD pair lower. The overnight hawkish remarks by a slew of influential Federal Reserve (Fed) officials reaffirmed expectations that the US central bank will keep interest rates higher for longer. Read more ...

GBP/USD

Overview
Today last price	1.2389
Today Daily Change	-0.0048
Today Daily Change %	-0.39
Today daily open	1.2437

Trends
Daily SMA20	1.2515
Daily SMA50	1.2416
Daily SMA100	1.2274
Daily SMA200	1.1971

Levels
Previous Daily High	1.2472
Previous Daily Low	1.2414
Previous Weekly High	1.2547
Previous Weekly Low	1.2392
Previous Monthly High	1.2584
Previous Monthly Low	1.2275
Daily Fibonacci 38.2%	1.2436
Daily Fibonacci 61.8%	1.245
Daily Pivot Point S1	1.241
Daily Pivot Point S2	1.2382
Daily Pivot Point S3	1.2351
Daily Pivot Point R1	1.2468
Daily Pivot Point R2	1.25
Daily Pivot Point R3	1.2527

Author

FXStreet Team

FXStreet

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