Pound Sterling Price News and Forecast: GBP/USD mired at seven-month lows

FXStreet Team FXStreet

GBP/USD mired at seven-month lows amid political and fiscal concerns

The GBP/USD pair declined to 1.3149 on Friday, hovering near a seven-month low. The sell-off was triggered by the government’s abrupt abandonment of plans to raise income tax rates ahead of the Autumn Statement on 26 November.

According to the Financial Times, Prime Minister Keir Starmer and Chancellor Rachel Reeves have scrapped the previously debated increases to basic and higher tax rates. Instead, they will seek more indirect measures to address a budget deficit estimated at £30 billion. Read more...

GBP/USD Elliott Wave: Sterling ready to shine

Back on October 23, while trading at 1.3343, we forecasted a decline in GBP/USD to reach 1.3050-1.3139. On November 5, Cable reached a low price of 1.3010. It is possible to consider the correction that began on July 2 complete at last week’s low.

If a major low is in place, then Cable may stage a large rally. GBP/USD carved a wave ((x)) high on September 17 at 1.3726. The decline since September 17 fits best as wave ((y)) labeled (a)-(b)-(c). Read more...

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FXStreet

EUR/USD edges lower below 1.1650 as Middle East tensions fuel US Dollar strength

The EUR/USD pair trades in negative territory around 1.1635 during the early Asian session on Thursday. The US Dollar strengthens against the Euro as escalating Middle East conflict boosts safe-haven flows. Traders brace for the Eurozone Retail Sales and US weekly Initial Jobless Claims reports, which will be released later on Thursday.

GBP/USD tests key moving averages as growth downgrade weighs

GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average, with this week's one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.