GBP/USD Forecast: Pound Sterling could face next resistance at 1.2440
Following a quiet Asian session, GBP/USD gathered bullish momentum and touched its highest level in 7 weeks above 1.2400 on Monday. The pair turned technically overbought but buyers could remain interested in case 1.2400 stays intact as support.
The Unemployment Rate in the US edged higher to 3.9% in October from 3.8% in December, with Nonfarm Payrolls increasing by a weaker-than-forecast 150,000 in that period. The US Dollar (USD) continued to weaken against its major rivals after October jobs report and GBP/USD registered impressive gains ahead of the weekend. Read more...
GBP/USD outlook: Risk appetite lifts the pair to seven-week high
GBPUSD bulls held grip at the start of the week and cracked psychological 1.2400 barrier, in attempts to extend Friday’s nearly 1.5% advance. Fresh risk appetite gave strong boost to sterling, in addition to BOE’s hawkish stance despite keeping rates on hold last week and warning signals from various sectors of the US economy and dovish steer from the central bank in response.
Last week’s advance and close above the ceiling of a multi-week consolidation range generated a signal of formation of a higher base (1.2040/70 zone) and possible stronger recovery. Read more...
Pound Sterling recovers further on higher risk appetite, UK GDP in focus
The Pound Sterling (GBP) looks set to deliver a fresh upside as the market mood is supportive for risk-sensitive assets. The GBP/USD pair is aiming for more upside as investors hope that the policy divergence between the Federal Reserve (Fed) and the Bank of England (BoE) will not widen further since they are both sufficiently restrictive to ensure price stability.
Further action in the Pound Sterling could be guided by the preliminary Q3 Gross Domestic Product (GDP) for 2023, which will be published later this week. Economists project a marginally negative Q3 GDP as UK firms cut heavily on workforce and inventories due to a poor demand environment. Read more...
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