Pound Sterling Price News and Forecast: GBP/USD may print fresh lows on likely stagflation in Europe

FXStreet Team FXStreet

GBP/USD: More pain ahead on poor Retail Sales, likely recession in Europe

The GBP/USD pair has been vulnerable from the last few trading sessions as the Russia-Ukraine war alarmed a situation of recession in Europe. The cable seems to print fresh 52-week lows as the market participants are dumping the Europe domain currencies on the expectation of a ‘stagflation’ situation going forward.

GBP/USD downtrend continues with the close below W L4

The GBP/USD is still bearish. We should see the move down below W L3. Continuation below W L4 1.3096. If market momentum holds we should see a 1.3039 test and below 1.2990 as the final target. The market below 1.3039 is very bearish and M L5 should be tested. W L5 is the final target. The first target is 1.6692, followed by 1.6598 the final target.

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