GBP/USD Forecast: Pound Sterling faces next key support at 1.2260
GBP/USD has started the new week under bearish pressure and declined below 1.2300 before staging a rebound in the European morning. The pair could have a difficult time regaining its traction unless the market mood improves later in the day.
Investors are concerned about rising crude oil prices causing energy inflation to remain uncomfortably high. The decision by some OPEC+ producers to voluntarily reduce output by a total of more than 1 million barrels per day until the end of the year caused crude oil prices to surge higher at the beginning of the week. The barrel of Brent was last seen rising more than 6% on the day at $84.50. Read more...
GBP/USD rebounds swiftly from one-week low, rallies back closer to mid-1.2300s
The GBP/USD pair attracts some dip-buying buying near the 1.2275 area, or a one-week low touched earlier this Monday and builds on its intraday ascent through the first half of the European session. Spot prices climb to a fresh daily high, around the 1.2335-1.2340 region in the last hour and for now, seem to have stalled the retracement slide from over a two-month high set on Friday.
The US Dollar (USD) surrenders its intraday gains to a one-week high and turns out to be a key factor offering some support to the GBP/USD pair. The prevalent risk-on mood - as depicted by a generally positive tone around the equity markets - is seen weighing on traditional safe-haven assets, including the Greenback. Apart from this, the prospects for additional interest rate hikes by the Bank of England (BoE) underpins the British Pound and contributes to the pair's goodish intraday rally of around 65 pips. Read more...
GBP/USD: Ongoing pressure for a retest of key resistance at 1.2445/50 – Scotiabank
GBP/USD bounces nicely from the 1.2275 area. Economists at Scotiabank expect the pair to pressure the 1.2445/50 resistance.
“Mar CIPS Manufacturing data was revised down slightly (47.9, from 48.0) but the data had little impact on the GBP which has traded steadily higher from the session low just under 1.23.”
“The Pound remains in a solid, short-term uptrend. Broader technical signals remain positive and underlying trend signals are aligned positively for the GBP. This implies limited downside for the GBP for the moment and ongoing pressure for a retest – at least – of key, medium-term resistance at 1.2445/50.” Read more...
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