GBP/USD Forecast: Pound needs to overcome 1.3380 to extend recovery
GBP/USD has failed to shake off the bearish pressure and fell toward 1.3300 on Wednesday. Although the pair is posting small daily gains on Thursday, it faces a couple of technical resistance levels that could limit the recovery in the near term. The broad-based dollar strength on rising US Treasury bond yields forced GBP/USD to stay on the back foot mid-week. After the US data showed that the annual Core Personal Consumption Expenditures (PCE) Price Index rose to 4.1% in October, the CME Group FedWatch Tool's probability of the Fed leaving the policy rate unchanged by June 2022 fell below 20%. Read more...
GBP/USD hovers above annual lows close to 1.3300 ahead of French fishermen blockades on Friday
Ahead of a five-hour FX market closure lasting between 1800GMT and 2300GMT due to the Thanksgiving holiday in the US, GBP/USD is trying to tentatively regain some composure. The pair had hit fresh annual lows just to the north of the 1.3300 level earlier on during Thursday’s session but has since bounced to the 1.3320s. On the day, the pair is now flat. The tone of Brexit developments seems to be tacking a tone for the worse again. A UK government spokesperson on Wednesday evening said that the UK PM had told the Irish PM that he was concerned about a substantial gap that remained between the UK and EU on the implementation of the Northern Ireland Protocol. Read more...
GBP/USD Analysis: Finds support ahead of 1.3300 amid easing Brexit worries
The GBP/USD pair extended its recent downfall from levels just above the key 1.3500 psychological mark and witnessed some follow-through selling for the fourth successive day on Wednesday. The downward momentum dragged the pair to the lowest level since December 2020 and was sponsored by a combination of factors. The impasse over the post-Brexit arrangement in Northern Ireland and fishing rights continued acting as a headwind for the British pound. In the latest developments, the new German government has fired a warning shot at Boris Johnson to expect retaliation if he breaks the Brexit deal for Northern Ireland. Separately, French fishermen were reportedly planning to block British vessels' access to French ports in protest against Britain's refusal to grant them more licences to operate in UK territorial waters. Read more...
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