Pound Sterling Price News and Forecast: GBP/USD remains under selling pressure amid the Fed’s hawkish stance

FXStreet Team FXStreet

GBP/USD Price Analysis: Remains on the defensive below the 1.2250 mark amid the oversold condition

The GBP/USD pair remains on the defensive below the mid-1.2200s during the Asian session on Monday. Market players await the release of the UK’s Gross Domestic Product (GDP) for the second quarter and the US highly-anticipated Core Personal Consumption Expenditure (PCE) Price Index data due on Friday. The major pair currently trades near 1.2242, gaining 0.02% on the day.

That said, the hawkish stance from the Federal Reserve (Fed) officials lifted the US Dollar (USD) against the British Pound (GBP). Fed Banks of Boston and San Francisco Presidents, Susan Collins and Mary Daly, emphasized that although inflation is cooling down, additional rate hikes would be necessary. This, in turn, might act as a headwind for the GBP/USD pair. Read more...

GBP/USD consolidates in a range below mid-1.2200s, seems vulnerable near multi-month low

The GBP/USD pair is seen oscillating in a narrow trading band during the Asian session on Monday and consolidating its recent losses to the lowest level since late March touched last week. Spot prices currently trade just below mid-1.2200s and seem vulnerable to prolonging a well-established downtrend from the 1.3140 area, or a 15-month peak touched on July 14.

The US Dollar (USD) stands tall near its highest level in more than six months and remains well supported by the Federal Reserve's (Fed) hawkish stance, which, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair. The Fed emphasized the need to keep interest rates higher for longer to push inflation back to the 2% target and lifted market bets for at least one more 25 bps lift-off by the year-end. Moreover, the so-called 'dot-plot' suggested just two rate cuts in 2024 as compared to four projected previously. Read more...

GBP/USD

Overview
Today last price	1.2242
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	1.224

Trends
Daily SMA20	1.249
Daily SMA50	1.2666
Daily SMA100	1.2643
Daily SMA200	1.2434

Levels
Previous Daily High	1.2302
Previous Daily Low	1.2231
Previous Weekly High	1.2425
Previous Weekly Low	1.2231
Previous Monthly High	1.2841
Previous Monthly Low	1.2548
Daily Fibonacci 38.2%	1.2258
Daily Fibonacci 61.8%	1.2275
Daily Pivot Point S1	1.2213
Daily Pivot Point S2	1.2187
Daily Pivot Point S3	1.2143
Daily Pivot Point R1	1.2284
Daily Pivot Point R2	1.2328
Daily Pivot Point R3	1.2355

Author

FXStreet Team

FXStreet

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