Pound Sterling Price News and Forecast: GBP/USD has been under pressure as US yields make their way up

FXStreet Team FXStreet

GBP/USD Forecast: Boris' bodies' remarks make the pound powerless ahead of Powell

"Let the bodies pile high" is better than having another lockdown – these insensitive comments attributed to UK Prime Minister Boris Johnson refuse to die down. Downing Street's denials were rebuffed by additional sources and they put the PM in a pickle.

Having to deal with scandals may hobble the government's efforts to push the economy forward despite the impressive vaccination campaign. That is weighing on the pound.

GBP/USD analysis: Bounces off support cluster

GBP/USD

On Monday, the British Pound dropped by 54 pips or 0.42% against the US Dollar. The currency pair tested a support cluster near the 1.3880 area during the Asian session on Tuesday.

The exchange rate bounced off the 55– and 200– hour SMAs support level on Tuesday morning. Most likely, buyers could pressure the GBP/USD pair higher within this session.

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 appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

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.