GBP/USD Forecast: Pound finds its footing on improving sentiment, stays fragile
GBP/USD has snapped a three-day losing streak on Tuesday and closed modestly higher near 1.3500, around which it continues to move sideways early Wednesday. The slight improvement witnessed in risk mood seems to be allowing the British pound to find some demand but the pair remains at the mercy of the dollar's market valuation.
The US Dollar Index, which tracks the dollar's performance against a basket of six major currencies, stays relatively quiet around 96.00 as investors gear up for the US Federal Reserve's policy announcements. Read more...
GBP/USD holds steady around 1.3500 mark, upside potential seems limited ahead of FOMC
The GBP/USD pair traded with a positive bias through the first half of the European session and was last seen hovering just a few pips above the 1.3500 psychological mark.
The pair built on the previous day's recovery move from the vicinity of the monthly low, around the 1.3435 regions and edged higher for the second successive day on Wednesday. The uptick, however, lacked any fundamental catalyst and could be solely attributed to some repositioning trade ahead of the key central bank event risk. Read more...
GBP/USD stays fragile and at mercy of dollar's market valuation
GBP/USD seems to have stabilized around 1.3500 early Wednesday. But in the view of FXStreet’s Eren Sengezer, it is too early to say that the pair has gone into a recovery phase.
“If FOMC Chairman Jerome Powell notes that they could start shrinking the balance sheet in the second half of the year instead of ‘toward the end of the year’ this could have a bullish impact on the dollar and weigh on GBP/USD. On the other hand, Powell might adopt a cautious tone on policy tightening and cause the dollar to face renewed selling pressure. In that case, GBP/USD should extend its rebound, at least in the near-term.” Read more...
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