GBP/USD Forecast: Bears to retain control as long as 1.2400 stays intact
GBP/USD has reversed its direction and recovered above 1.2350 early Thursday after having touched its lowest level since early April at 1.2330. The near-term technical outlook suggests that sellers are likely to retain control unless the pair flips 1.2400 into support.
Although stronger-than-expected Consumer Price Index (CPI) data from the UK revived expectations for additional Bank of England (BoE) rate hikes, the persistent US Dollar (USD) strength forced GBP/USD to remain under bearish pressure. Read more ...
GBP/USD rebounds from 7-week lows near 1.2330
GBP/USD retreats for the fourth session in a row and extends further the rejection from 2023 peaks near 1.2680 (May 10), an area also coincident with the 2021-2023 resistance line and the 100-week SMA.
In the meantime, recession concerns in the UK economy appears to have been reignited following sticky inflation figures in the UK during April ([published on May 24), which in turn seem to have reinforced the idea of extra tightening by the BoE in the upcoming MPC meetings. Read more ...
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