Pound Sterling Price News and Forecast: GBP/USD levels well below 1.1000 are achievable

GBP/USD Forecast: Acceptance below 1.1200 mark sets the stage for further losses

The GBP/USD pair comes under some renewed selling pressure on Friday and drops to over a one-week low during the first half of the European session. The British pound is weighed down by the disappointing UK Retail Sales figures, which suggest that consumers are feeling the pinch of the cost-of-living crisis and high inflation. In fact, the UK Office for National Statistics reported this Friday that Retail Sales declined by 1.4% in September, missing estimates pointing to a 0.5% fall. On an annualized basis, the sales plunged -6.9% during the reported month against the 5.0% slide expected. Moreover, the core sales tumbled 6.2% YoY in September versus -4.1% anticipated and -5.3% previous. This comes on the back of the recent political turmoil in the UK and continues to undermine sterling. Read more...

GBP/USD: Levels well below 1.1000 are achievable – MUFG

Sterling’s rally yesterday has fully reversed as investors conclude the resignation of Liz Truss as Prime Minister does not necessarily mean political uncertainty will be removed. Economists at MUFG believe that GBP/USD could return to sub-1.10 levels.

“The pound remains vulnerable to the downside and we still see levels well below 1.1000 as achievable. The conviction of the view comes more from the US dollar side but we also see potential for GBP underperformance versus EUR.” Read more...

GBP/USD: Two-way trades in 1.1060-1.1360 range for now – OCBC

The GBP/USD pair drops to over a one-week low on Friday. In the near-term, two-way trade is likely, in the opinion of economists at OCBC Bank.

“Bullish momentum on the daily chart shows tentative signs of waning while RSI fell. Risks are skewed to the downside.” “Support at 1.1130 (21-Day Moving Average), 1.1060 levels. Resistance at 1.1360, 1.1420 (50 DMA).” “We look for two-way trades in the 1.1060-1.1360 range for now.” Read more...