Pound Sterling Price News and Forecast: GBP/USD remains pressured around six-week low

FXStreet Team FXStreet

GBP/USD Price Analysis: Bears keep controls on the way to 1.3935

GBP/USD stays depressed around 1.3990 after dropping the most since April-end, not to forget testing early May levels, during the initial Asian session trading on Thursday. The cable pair’s Fed-led slump broke the three-month-old horizontal support around 1.4010-4000. The bearish sentiment also gains support from the downbeat MACD signals.

Sterling rises as rising UK inflation puts pressure on the BOE

The British pound rose on Wednesday after the relatively strong UK consumer price index (CPI) data. According to the Office of National Statistics (ONS), the country’s consumer inflation rose from 1.5% in April to 2.1% in May on a year-on-year basis. Similarly, the core CPI that excludes the volatile food and energy products, rose from 1.3% to 2.0%. This increase was mostly because of higher clothing and gasoline prices as the country continued to reopen. The data came a day after the ONS published a relatively strong unemployment rate and a few days ahead of the Bank of England decision.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.