Pound Sterling Price News and Forecast: GBP/USD in search of a bottom, with eyes on Fed and BOE

FXStreet Team FXStreet

GBP/USD Weekly Forecast: In search of a bottom, with eyes on Fed and BOE

There was no reprieve for GBP bulls, as the previous week’s selling spiral gathered steam and smashed GBP/USD to its lowest level since July 2020 at 1.2410. King dollar reigned supreme amid heightening volatility within the G10 fx space throughout the week. The monetary policy divergence between the Fed and BOE will remain the main underlying theme ahead of policy announcements and US Nonfarm Payrolls. Read more...

GBP/USD rallies into upper 1.2500s amid pre-month-end buck profit-taking

Pre-month-end profit-taking in the US dollar, which has up until this point been on a rampage higher in recent weeks against most of its major counterparts, is being attributed as the main factor giving GBP/USD a lift on Friday. The pair was last trading in the 1.2575 region, up about 1.0% on the day and over 1.3% higher versus Thursday’s intra-day lows at 1.2410. Read more...

GBP/USD

Overview
Today last price	1.2572
Today Daily Change	0.0116
Today Daily Change %	0.93
Today daily open	1.2456

Trends
Daily SMA20	1.2951
Daily SMA50	1.3127
Daily SMA100	1.3308
Daily SMA200	1.3479

Levels
Previous Daily High	1.257
Previous Daily Low	1.2411
Previous Weekly High	1.309
Previous Weekly Low	1.2823
Previous Monthly High	1.3438
Previous Monthly Low	1.3
Daily Fibonacci 38.2%	1.2472
Daily Fibonacci 61.8%	1.2509
Daily Pivot Point S1	1.2388
Daily Pivot Point S2	1.232
Daily Pivot Point S3	1.223
Daily Pivot Point R1	1.2547
Daily Pivot Point R2	1.2638
Daily Pivot Point R3	1.2706

GBP/USD Outlook: Any meaningful recovery seems elusive; US PCE inflation data in focus

The GBP/USD pair witnessed heavy selling for the sixth successive day and dived to its lowest level since July 2020 on Thursday amid the relentless US dollar buying. The prospects for rapid interest rate hikes in the US, along with the deteriorating global economic outlook, pushed the USD to a five-year high. Investors seem convinced that the Fed would adopt a more aggressive policy response to combat stubbornly high inflation and have been pricing in a 50 bps rate hike at the upcoming meeting on May 3-4. The bets were reaffirmed by hawkish remarks from influential FOMC members last week, including Fed Chair Jerome Powell. The US central bank is also expected to continue tightening its monetary policy when it meets again in June and July, and ultimately lift rates to around 3.0% by the end of the year. Read more...

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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