Pound Sterling Price News and Forecast: GBP/USD seems vulnerable below 100-day SMA amid firmer USD

FXStreet Team FXStreet

GBP/USD price forecast: Seems vulnerable below 100-day SMA amid firmer USD

The GBP/USD pair meets with a fresh supply and slides below mid-1.3400s, back closer to the overnight swing low during the early part of the European session on Tuesday. The US Dollar (USD) attracts fresh buyers following the previous day's pullback from the vicinity of the late September high and turns out to be a key factor exerting downward pressure on the currency pair. The USD strength could be attributed to a broadly weaker Japanese Yen (JPY) and the Euro, which continue to be weighed down by domestic political uncertainties.

An unexpected result from Japan’s leadership contest sets the country on course for more expansionary fiscal policies. The expectations forced investors to temper their bets for an immediate interest rate hike by the Bank of Japan (BoJ), and turned out to be a key factor undermining demand for the JPY. Meanwhile, the surprise resignation of France’s new Prime Minister Sebastien Lecornu, amid a backlash from allies and adversaries over his freshly-appointed cabinet, dents sentiment surrounding the shared currency and benefits the Greenback. Read more...

GBP/USD Weekly Forecast: Pound Sterling struggles despite US government shutdown

The Pound Sterling (GBP) recovery from seven-week lows against the US Dollar (USD) lost legs, sending GBP/USD back below the 1.3500 threshold.

Amid cautious remarks by the Bank of England (BoE) policymakers and a broad-based US Dollar downside, the GBP/USD pair staged an impressive turnaround from the 1.3330 region to briefly regain 1.3500 before facing some headwinds above the latter in the second half of the week. Read more...

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