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: Gains remain capped by 1.1650

EUR/USD remains in recovery-mode following the closing bell in Euroland on Wednesday, hovering around the 1.1650 zone amid renewed downside pressure on the US Dollar and a marginal improvement in the global sentiment.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.