Pound Sterling Price News and Forecast: GBP/USD stabilizes above 1.2200 but looks vulnerable

FXStreet Team FXStreet

GBP/USD hovers around 1.2200 post recent losses on upbeat US data

GBP/USD retraces the recent losses that were registered on Thursday, trading higher around the 1.2200 psychological level. However, the pair faced challenges due to the optimistic economic data from the United States (US).

The Consumer Price Index (CPI) in the US, as revealed by the US Bureau of Labor Statistics (BLS), exceeded expectations in September, with annual figures expanding consistently at a rate of 3.7%, slightly surpassing the estimated 3.6%. Read more...

GBP/USD Forecast: Pound Sterling stabilizes above 1.2200 but looks vulnerable

GBP/USD lost more than 100 pips on Thursday and erased all the gains it recorded in the first half of the week. Early Friday, the pair staged a rebound and stabilized above 1.2200. US Treasury bond yields surged higher on Thursday after the September inflation report and helped the US Dollar (USD) outperform its rivals.

Although the US Bureau of Labor Statistics announced that the annual Core Consumer Price Index (CPI) inflation, which excludes volatile food and energy prices, edged lower to 4.1% from 4.3% as forecast in September, underlying details of the report revived expectations for one more Federal Reserve rate increase later in the year. Read more...

Pound Sterling weakens on persistent slowdown fears

The Pound Sterling (GBP) dropped from a two-week high as the United Kingdom’s economic outlook weakened after factory output contracted for the second consecutive month. The GBP/USD pair surrendered the majority of recent gains as data from the US showed inflation remains persistent, denting the risk appetite of market participants. UK’s manufacturing and overall Industrial Production dropped in August as firms cut spending on labor and inventory due to a poor demand outlook.

More sell-off in the Pound Sterling is anticipated as Bank of England (BoE) policymaker Swati Dhingra supported a rate cut if economic growth remains below estimates. The UK is expected to remain on the backfoot compared with other G7 economies as it is struggling with higher interest rates, filthy trade relations with the European Union, and rising gasoline prices. Read more...

GBP/USD

Overview
Today last price	1.2169
Today Daily Change	-0.0006
Today Daily Change %	-0.05
Today daily open	1.2175

Trends
Daily SMA20	1.2234
Daily SMA50	1.2476
Daily SMA100	1.2602
Daily SMA200	1.2444

Levels
Previous Daily High	1.2332
Previous Daily Low	1.2172
Previous Weekly High	1.2262
Previous Weekly Low	1.2037
Previous Monthly High	1.2713
Previous Monthly Low	1.2111
Daily Fibonacci 38.2%	1.2233
Daily Fibonacci 61.8%	1.2271
Daily Pivot Point S1	1.2121
Daily Pivot Point S2	1.2066
Daily Pivot Point S3	1.1961
Daily Pivot Point R1	1.2281
Daily Pivot Point R2	1.2386
Daily Pivot Point R3	1.2441

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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