Pound Sterling Price News and Forecast: GBP/USD sellers await a drop below 1.2130

FXStreet Team FXStreet

GBP/USD struggling to stage a rebound [Video]

GBPUSD has been forming a structure of lower highs and lower lows since its 16-month peak of 1.3141. Meanwhile, in the near term, both the RSI and the stochastic oscillator are tilted to the bearish side, shattering the bulls' hopes for a sustained rebound. Read more...

GBP/USD Forecast: Sellers await a drop below 1.2130

GBP/USD reversed its direction after rising above 1.2200 on Monday and retreated to the 1.2150 area early Tuesday. The pair's near-term technical outlook points a bearish tilt and additional losses could be witnessed if the 1.2130 support fails.

In the absence of high-impact data releases, the improving risk mood made it difficult for the US Dollar (USD) to find demand in the American session on Monday. Meanwhile, Philadelphia Federal Reserve President Patrick Harker reiterated his dovish message by saying that the US central bank was "very likely done" with interest rate hikes, putting additional weight on the USD's shoulders. Read more...

GBP/USD outlook: Cable weakens on downbeat UK earnings data, inflation report in focus

Cable pulls back in European trading on Tuesday, erasing a good part of Monday’s 0.65% jump, pressured by weaker than expected UK pay growth data, which increases pressure on those advocating for another BoE rate hike.

Markets await release of UK Sep inflation report on Wednesday (6.5%y/y f/c vs 6.7% Aug and core 6.0% f/c vs 6.2% Aug), September figure in line or below expectations will weigh further on hawkish rate view and keep sterling at the back foot.

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