GBP/USD remains well supported above 1.3600 as sterling shrugs off Westminister noise about potential PM replacement
GBP/USD has been choppy on Thursday with the US dollar seeing a mixed reaction to weaker than expected initial jobless claims and housing data, though the pair has for the most part remained well supported to the north of the 1.3600 level. At current levels in the 1.3620s, cable looks on course to post an on-the-day gain of about 0.1% or roughly 20 pips. Sterling continues to shrug off Westminster noise surrounding the potential ousting of Boris Johnson from his position as UK PM. Analysts note that his potential replacements, such as UK Chancellor Rishi Sunak (who is the front-runner to replace him), would be unlikely to mark a significant shift in economic policy. Read more...
GBP/USD Forecast: Sellers wait for 1.3600 support to fail
GBP/USD has managed to stage a technical correction after pushing lower earlier in the week and seems to have gone into a consolidation phase above 1.3600. The near-term technical outlook doesn't yet point to a buildup of bullish momentum and the pair could come under renewed selling pressure if buyers fail to defend 1.3600. The British pound struggled to capitalize on the hot inflation data from the UK on Wednesday but gained traction ahead of the American session as retreating US Treasury bond yields caused the greenback to lose interest. This action confirms the view that the dollar's valuation remains the primary driver of the pair. Read more...
GBP/USD Analysis: Bulls seem non-committed amid UK leadership crisis
The GBP/USD pair regained positive traction on Wednesday and stalled a three-day-old corrective slide from the very important 200-day SMA. The British pound was boosted by hotter-than-expected UK CPI, which accelerated to a 5.4% YoY rate in December or the highest level in nearly 30 years. The data reaffirmed bets for additional rate hikes by the Bank of England, which, along with the announcement to lift COVID-19 restrictions in the UK, acted as a tailwind for sterling. In fact, UK Prime Minister Boris Johnson told parliament that measures imposed to fight the surge in Omicron cases would be lifted next week, citing data that showed infections had peaked. Read more...
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