Pound Sterling Price News and Forecast: GBP/USD – Inflation shock lifts cable past key resistance

FXStreet Team FXStreet

GBP/USD: Inflation shock lifts cable past key resistance – What's next?

UK inflation surprised markets in April, jumping to 3.5%, the highest rate since January 2024. The unexpected surge was largely driven by rising household bills and sticky services inflation. This inflationary spike complicates the Bank of England's (BoE) path forward, casting doubt on the likelihood of near-term rate cuts and fueling expectations that rates may remain elevated for longer than anticipated. Read more...

GBP/USD Forecast: Pound Sterling retreats after testing key resistance on UK inflation

GBP/USD gathered strength in the European morning on Wednesday rose to its highest level since February 2022 near 1.3470. Although the pair loses its traction following the initial upsurge, the technical outlook suggests that the bullish bias remains unchanged.

The UK's Office for National Statistics (ONS) reported on Wednesday that annual inflation in the UK, as measured by the change in the Consumer Price Index (CPI), climbed to 3.5% in April from 2.6% in March. This reading came in above the market expectation of 3.3%. Additionally, the CPI rose by 1.2% on a monthly basis after increasing by 0.3% in March, while the core CPI, which excludes volatile food and energy prices, increased by 3.8% on a yearly basis. Read more...

GBP/USD spikes to new highs – More upside after A-B-C?

UK inflation came in hotter than expected at 3.5% versus 3.3%, which raises the likelihood that the Bank of England could delay potential rate cuts. As we know, if inflation overshoots expectations while rate cuts are still on the table, it risks fueling inflation even further. So the market may now be thinking the BoE will hold off and possibly shift to a more hawkish tone.

That’s likely why Cable briefly reached new highs and even broke to fresh highs of the year before pulling back slightly. Now the question is whether that spike was part of an ending diagonal—or maybe just a leading diagonal—followed by an a-b-c retracement before more upside. Read more...

Author

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.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.