GBP/USD Forecast: Investors struggle to find a reason to buy the British pound

GBP/USD ended up posting modest gains on Tuesday but lost its recovery momentum early Wednesday. As markets assess the latest announcement from the Bank of England (BoE), the pair stays near 1.0700 but investors are likely to continue to find it highly risky to bet on a steady rebound in the British pound.

Commenting on the recent market developments, "it's hard not to draw the conclusion that we will need significant monetary policy response," Bank of England (BoE) Chief Economist Pill said late Tuesday. Pill further noted that they will not be selling gilts into a dysfunctional market but these remarks did little to nothing to help the sterling find demand. Read more...

GBPUSD

GBP/USD keeps losing strength

Looking at GBPUSD’s chart, we can see that it is in a downward trend and that it is unable to pass above the level of 1.0740, whereas currently it is traded at the rate of 1.067. After the announcement of the British government for the tax cuts, GBP is keep loosing strength and today we could see it falling towards its support of 1.0650 and if it will not manage to hold it above that level, then we should see it testing the level of 1.0630. Read more...

GBPUSD

GBP/USD bounces off low, still deep in the red amid anxiety over UK’s economic plans

The GBP/USD pair plunges nearly 300 pips from the daily high and slips below mid-1.0500s heading into the North American session on Wednesday, though lacks follow-through. The pair is currently placed just below the 1.0600 round-figure mark, still down over 1.25% for the day.

The British pound did get a minor lift after the Bank of England announced that it will start buying long-dated UK government bonds to help restore orderly market conditions. The UK central bank's intervention appeared to calm the market, sending the yield on the 30-year benchmark gilt down by more than 50 bps at one point. The initial market reaction, however, fades rather quickly, which is evident from the GBP/USD pair's dramatic intraday turnaround from the 1.0840 region. Read more...

GBP/USD

Overview
Today last price 1.0627
Today Daily Change -0.0105
Today Daily Change % -0.98
Today daily open 1.0732
 
Trends
Daily SMA20 1.1378
Daily SMA50 1.1758
Daily SMA100 1.2013
Daily SMA200 1.2628
 
Levels
Previous Daily High 1.0838
Previous Daily Low 1.0655
Previous Weekly High 1.1461
Previous Weekly Low 1.084
Previous Monthly High 1.2294
Previous Monthly Low 1.1599
Daily Fibonacci 38.2% 1.0768
Daily Fibonacci 61.8% 1.0725
Daily Pivot Point S1 1.0645
Daily Pivot Point S2 1.0559
Daily Pivot Point S3 1.0462
Daily Pivot Point R1 1.0829
Daily Pivot Point R2 1.0925
Daily Pivot Point R3 1.1012

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD regained its traction after dropping toward 1.0350 in the early American session and climbed above 1.0400. Trading conditions remain thin on Black Friday and the pair remains on track to end the week in positive territory.

EUR/USD News

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD managed to stage a recovery toward 1.2100 in the American session on Friday and now looks to register gains for the third straight week. The US Dollar struggles to preserve its strength as markets remain subdued on Black Friday. 

GBPUSD News

Gold steadies near $1,750 as US yields retreat

Gold steadies near $1,750 as US yields retreat

Gold price continues to move sideways at around $1,750 heading into the weekend. The benchmark 10-year US Treasury bond yield retreated from the daily high it touched above 3.75% earlier in the day, allowing XAU/USD to erase a portion of its daily losses.

Gold News

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read more

FX next week and yield curve inversions

FX next week and yield curve inversions

Since the Fed's last raise November 3, Fed Funds rate opens and closes at 3.83. The Fed Funds rate once traded freely on its own with highs and lows as any financial instrument. In 2000, Central banks implemented meetings every 6 weeks.

Read more

Forex MAJORS

Cryptocurrencies

Signatures