Pound Sterling Price News and Forecast: GBP/USD is building strength for shifting the business above 1.2200

FXStreet Team FXStreet

GBP/USD eyes upside above 1.2200 as risk-on mood solidifies on Credit Suisse buyout

The GBP/USD pair is gathering strength is shifting its auction above the round-level resistance of 1.2200 in the Asian session. The Cable has found support as the appeal for the US Dollar Index (DXY) is declining amid rising expectations of a less-hawkish monetary policy by the Federal Reserve (Fed).

S&P500 futures are showing significant gains in the Asian session as UOB has confirmed a buyout for Credit Suisse. This has improved the risk appetite of the market participants as investors’ confidence is getting restored. Sky News reported that under the takeover UBS will pay 3bn Swiss francs (£2.6bn) to acquire Credit Suisse. And, it has agreed to assume up to 5bn francs (£4.4bn) in losses, and 100bn Swiss francs (£88.5bn) in liquidity assistance will be available to both banks. Read more...

GBP/USD pops in the open to test 1.2200

The US Dollar fell on Friday sending GBP/USD to test 1.22 the figure although further declines in the shares of Credit Suisse and First Republic Bank rattled markets and weighed on the pair later in the day. However, UBS is said to take over Credit Suisse in a deal aimed at stemming what was fast becoming a global crisis of confidence which is putting a bid back into the pair. GBP/USD is up by some 0.2% and trading back in the 1.22s.

The UBS and Credit Suisse deal is expected to be closed by the end of this year. Colm Kelleher, chairman of UBS Group, said the agreement "represents enormous opportunities". He also said that his bank's long-term aim would be to downsize Credit Suisse's investment banking business and align it with the "conservative risk culture" of UBS. Read more...

GBP/USD

Overview
Today last price	1.2188
Today Daily Change	0.0013
Today Daily Change %	0.11
Today daily open	1.2175

Trends
Daily SMA20	1.2029
Daily SMA50	1.2141
Daily SMA100	1.2049
Daily SMA200	1.1892

Levels
Previous Daily High	1.2201
Previous Daily Low	1.21
Previous Weekly High	1.2204
Previous Weekly Low	1.201
Previous Monthly High	1.2402
Previous Monthly Low	1.1915
Daily Fibonacci 38.2%	1.2162
Daily Fibonacci 61.8%	1.2138
Daily Pivot Point S1	1.2116
Daily Pivot Point S2	1.2058
Daily Pivot Point S3	1.2015
Daily Pivot Point R1	1.2217
Daily Pivot Point R2	1.2259
Daily Pivot Point R3	1.2318

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.

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