Pound Sterling Price News and Forecast: GBP/USD rebounds from 0.786 Arc

FXStreet Team FXStreet

GBP/USD rebounds from 0.786 Arc – Potential decline toward 0.618 Arc

Overview: Based on Arc Cycle Analysis applied to the 2h chart, British Pound/US Dollar has rebounded from the 0.786 Resistance Arc within the current Arc Cycle. The rebound confirms a bearish reaction and opens the potential for continued movement toward the next Support Arc.

Price has rebounded from the 0.786 Resistance Arc, confirming that the Arc continues to act as a resistance boundary within the current Arc Cycle. Continued bearish momentum could drive price toward the next Support Arc at the 0.618 Target Arc level. Read more...

GBP/USD Price Forecast: Fails near 1.3500 as bears eye 200-SMA ahead of Fed decision

The GBP/USD pair attracts fresh sellers following an intraday uptick to the 1.3500 neighborhood and drops to the lower end of its daily range during the first half of the European session on Wednesday. Spot prices currently trade around the 1.3470-1.3465 region, just above a one-month low touched on Tuesday, as traders keenly await the outcome of a two-day FOMC meeting.

Heading into the key central bank event, growing acceptance that the US Federal Reserve (Fed) will stick to its hawkish stance amid oil-driven inflation risks and elevated US bond yields acts as a tailwind for the US Dollar (USD). Apart from this, escalating tensions in the Middle East underpin the safe-haven buck, capping the GBP/USD pair, which fails to benefit from the expected rise in UK consumer inflation. Read more...

British Pound remains on the defensive as UK CPI meets expectations

The British Pound (GBP) ticks higher against the US Dollar (USD) on Wednesday, although the GBP/USD pair retreated to 1.3480 from session highs near 1.3500 after the release of the UK Consumer Prices Index (CPI) data for August. More broadly, the Pound remains 0.3% lower this week so far, as markets brace for a Federal Reserve (Fed) rate hike while the Bank of England (BoE) is expected to leave rates on hold on Thursday.

Consumer inflation acceerated to 0.5% in the UK in August from 0.3% in July, while the yearly CPI climbed to 3.1% from 2.9%, according to levels released by the UK Office for National Statistics on Wednesday. The core CPI has remained growing at a steady 2.6% pace, in line with market expectations. Read more...

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AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

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