Pound Sterling Price News and Forecast: GBP/USD hits 1.37, highest in almost three years

FXStreet Team FXStreet

GBP/USD Forecast: Fakeout at 1.37? Initial surge may prove short-lived despite good reasons to rise

First impressions can sometimes be deceiving – and GBP/US potential move above 1.37 may also prove a selling opportunity. Apart from entering oversold conditions (see below) there are reasons for a pause after the justified advance.

Pound/dollar received a dual boost on Tuesday. First, Bank of England Governor Andrew Bailey stated that negative interest rates are "controversial" – seeming to put the discussion to rest. The specter of sub-zero rates has been weighing on sterling since June 2020 and shelving the idea removes one downside risk. Read more...

GBP/USD hits 1.37, highest in almost three years

European stock markets were flat in early trade on Wednesday after a mildly positive session on Wall Street and mixed bag in Asia. Reflationary pressures continued as US 10-year rates rose close to 1.2% and the 2s10s curve steepened to its widest since May 2017. Equity markets are coming off record highs and the chop sideways reflects a degree of uncertainty as investors pick their way through the minefield of cases, vaccines, stimulus, reflation and an upcoming earnings season.

Coronavirus cases are picking up in China, raising concerns about a fresh wave in Asia's largest economic driver. Chinese stocks were lower, while shares in HSBC and Standard Chartered led the decliners on the FTSE 100 at the open. But progress in vaccinating populations in the UK and US, with Europe moving more slowly but still in the right direction, continues to underpin a broadly positive risk outlook, even if valuations are stretched and rising rates could cause trouble down the line. Read more...

GBP/USD outlook: Bulls pressure key 1.37 barrier but risk of stall exists

Cable keeps firm bullish tone in early Wednesday’s trading and extends strong rally from the previous day (the pair was up 1.04% for the day in the biggest one-day rally since Nov 5), pressuring key barriers at 1.3700 zone (new multi-month high / upper 20-d Bollinger band).
Full retracement of 1.3700/1.3451 pullback suggests that corrective phase is over and larger bulls are ready to resume.
Fibo projections at 1.3763 (123.6%) and 1.3800 (138.2%) mark immediate targets, with stronger acceleration to threaten psychological 1.40 barrier.
Rising stocks and weaker dollar underpin fresh risk appetite and lift sterling, as Brexit story is currently sidelined, but worries about pandemic remain and could deflate pound. Read more...

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FXStreet Team

FXStreet

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold sticks to intraday gains above $5,150; upside seems limited amid bullish USD

Gold preserves its modest intraday gains through the Asian session on Wednesday and currently trades just above the $5,150 level, up around 1.30% for the day. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

Bitcoin, Ethereum and Ripple struggle for direction as consolidation persists

Bitcoin, Ethereum and Ripple prices trade with a cautious tone at the time of writing on Wednesday as upside momentum continues to fade across the broader crypto market. BTC remains within a parallel channel, ETH struggles below key resistance, while XRP remains fragile within a descending channel. These top three cryptocurrencies by market capitalization continue to struggle to establish a directional bias amid the consolidation phase.

When rates start driving the bus through a war zone

The volatility regime itself is also changing character. EM carry trades thrive in calm markets. They suffocate in environments that resemble Buckaroo Banzai trading conditions, where headlines move faster than models. That is exactly the world investors are now trying to recalibrate to. Euro rate volatility had been remarkably subdued even while equities were wobbling. That stability is now being questioned, and once volatility leaks into rates it rarely stays contained. Indeed, carry trades love calm seas. War turns the ocean into white water.

Ripple falters amid sell-off jitters and negative funding rates

Ripple (XRP) has come under pressure, drifting lower to $1.35 at the time of writing on Tuesday. The over 2% correction looks poised to erase the previous day’s gains, which lifted the remittance token to $1.42.