Pound Sterling Price News and Forecast: GBP/USD holds in corrective territory ahead of key events

FXStreet Team FXStreet

GBP/USD holds in corrective territory ahead of key events later in the week

GBP/USD is flat on the session and has moved within a range of 1.3520 and 1.3539 on the session so far after it dipped under 1.3500 in European markets before returning to 1.3535 thereafter. It's been one of those starts to the week where there is no momentum one way or the other as the markets digest the events of the prior week and await the next catalyst.

GBP/USD

Overview
Today last price	1.3534
Today Daily Change	0.0004
Today Daily Change %	0.03
Today daily open	1.353

Trends
Daily SMA20	1.3558
Daily SMA50	1.3441
Daily SMA100	1.351
Daily SMA200	1.371

Levels
Previous Daily High	1.3552
Previous Daily Low	1.3491
Previous Weekly High	1.3628
Previous Weekly Low	1.3387
Previous Monthly High	1.3749
Previous Monthly Low	1.3358
Daily Fibonacci 38.2%	1.3514
Daily Fibonacci 61.8%	1.3528
Daily Pivot Point S1	1.3497
Daily Pivot Point S2	1.3463
Daily Pivot Point S3	1.3436
Daily Pivot Point R1	1.3558
Daily Pivot Point R2	1.3585
Daily Pivot Point R3	1.3619

GBP/USD outlook: Sterling remains in red for the second day following upbeat US NFP

Cable remains under pressure on Monday and probes again through 100DMA (1.3508) which contained Friday’s drop (the pair was down 0.5% for the day) as pound came under increased pressure from better than expected US jobs data which inflated dollar.

GBP/USD surrenders some gains, back to 1.3420

GBP/USD holds on to moderate gains above 1.3400 the figure on Friday. Optimism surrounding the UK government’s leadership transition and expectations of further BoE tightening support the British Pound, while easing tensions in the Middle East and fading Fed rate-hike expectations weigh on the US Dollar.

EUR/USD turns positive, targets 1.1450

EUR/USD now picks up pace and advances toward the 1.1440 region on Friday, up modestly for the day. With no major economic data due, lingering uncertainty over the US-Iran conflict keeps investors cautious, limiting the pair's upside.

Gold remains offered, still below $4,100

Gold struggles to extend Thursday’s rebound and navigates below the $4,100 mark per troy ounce on Friday. Uncertainty surrounding the Middle East conflict limits the precious metal’s upside, which is also under pressure amid rising US Treasury yields across the curve.

Week ahead – US CPI and Warsh testimony to take centre stage, BoC eyed too

US inflation report and Warsh testimony to headline the week. Dollar to dominate amid slew of other US data and Mideast tensions. Amid fresh Iran escalation, China GDP to shed light on Q2 impact. Bank of Canada not expected to follow RBNZ with rate hike.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June Federal Open Market Committee meeting landed mid-round-trip, describing a world that had already stopped existing.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.