Pound Sterling Price News and Forecast: GBP/USD recovered after hitting the lowest since March 2020

FXStreet Team FXStreet

GBP/USD Price Analysis: 1.1700 appears under threat after bear flag confirmation

GBP/USD is closing in on 1.1700, extending Friday’s decline amid an extension of risk-off sentiment and the US dollar recovery. Asian traders react negatively to Fed Chair Jerome Powell’s Jackson Hole remarks, as reflective of the 0.80% drop in the US S&P 500 futures in opening trades. Expectations of higher rates for longer have ramped up after Powell’s comments, stoking growth fears and boding ill for global stocks.

GBP/USD Weekly Forecast: Braces for more pain in the NFP week ahead

Having lost roughly 300 pips in the previous week, GBP/USD ended the week marginally lower, below the 1.1800 mark. The US dollar recovery and hawkish Fed rate hike expectations were the key catalysts that smashed the currency pair to the lowest level in two months at 1.1717. Looking ahead, GBP bulls brace for more pain as US Nonfarm Payrolls (NFP) grab attention in a holiday-shortened week.

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EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.