GBP/USD Price Analysis: Extends recovery from 50-bar EMA to pierce 1.3350
GBP/USD remains on the front-foot around 1.3353 amid the initial Asian session on Thursday. The cable snapped a three-day winning streak the previous day but break 50-bar EMA support. The following pullback puts the quote back above an ascending trend line from August 25, which in turn favors the further upside as RSI conditions are also normal.
As a result, 1.3400 becomes the immediate level to watch during the pair’s further upside ahead of the yearly high near 1.3485. However, the bulls will have to cross the previous year’s peak surrounding 1.3515 to justify their additional strength towards targeting a move beyond 1.3600 round-figures.
GBP/USD Forecast: BOE hit the Pound by hinting more QE
Gold has been unstoppable throughout 2020, with the precious metal surging over 35% this year. Gold starts the fourth quarter on a strong note after an historic announcement by the Fed to make significant shifts to its policy framework.
The Sterling Pound was unable to resist the dollar’s renewed demand, falling as low as 1.3282 to finally settle around 1.3330. Additional pressure came from the BOE as the central bank presented its annual report. Deputy Governor Ramsden said that policymakers could step up the pace of quantitative easing if needed. "We could do it fast if market dysfunction required it." Governor Bailed added that it's very important for the BoE's framework to be robust enough so they can "go big and go fast."