Pound Sterling Price News and Forecast: GBP/USD is testing support at previous highs in the 1.3420 area

British Pound retreats from two-week highs despite upbeat UK manufacturing activity

The British Pound (GBP) holds moderate gains against the US Dollar (USD) on Monday but has eased from the two-week highs hit earlier in the day, despite the confirmation of solid UK manufacturing activity in October. The GBP/USD is testing support at previous highs in the 1.3420 area as of writing, down from session highs a few pips shy of 1.3450.

Earlier in the day, the UK final S&P Manufacturing Purchasing Managers' Index (PMI) confirmed preliminary data showing that the sector’s activity grew at a 52.8 pace in October, its strongest reading in five months, from 51.9 in September. Read more...

British Pound trades positive at the start of the BoE’s policy week

The British Pound (GBP) is up against a majority of its currency peers, trading 0.3% higher to near 1.3430 vs. the US Dollar (USD) at the start of the week. The British currency trades higher, while investors keenly await the Bank of England’s (BoE) monetary policy announcement on Thursday.

Analysts at ING note that Sterling is “trading reasonably well,” supported by the market’s conviction that elevated energy costs leave the BoE with “no alternative but to hike rates on Thursday.” In their view, “a 25bp rate hike to 4.00% looks like a done deal,” reinforcing the constructive tone around the Pound ahead of the policy decision. Read more...

GBP/USD Price Forecast: Sticks to bullish near 1.3400 ahead of BoE decision on Wednesday

The GBP/USD pair attracts some dip-buyers at the start of a new week and climbs back to the 1.3400 mark during the Asian session, stalling its modest pullback from the highest level since September 16 set on Friday.

The latest optimism over a potential diplomatic breakthrough to end the US-Iran war undermines the safe-haven US Dollar (USD). The British Pound (GBP), on the other hand, continues to draw support from expectations of tighter monetary policy from the Bank of England (BoE). This, in turn, acts as a tailwind for the GBP/USD pair, though bulls seem hesitant to place aggressive bets ahead of the key central bank event and important US macro data later this week. Read more...