Pound Sterling Price News and Forecast: GBP/USD stands at the front foot ahead of US labor report

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling could extend rebound once 1.2200 is confirmed as support

GBP/USD gathered bullish momentum and climbed to a fresh 10-day high above 1.2220 on Thursday. The pair lost its traction early Friday and went into a consolidation phase at around 1.2200, with investors' attention shifting to the US data releases.

The Bank of England (BoE) left the policy rate unchanged at 5.25% with a 6-3 vote after the November policy meeting. The BoE adopted a cautious tone regarding further policy tightening but noted that risks to inflation projections were skewed to the upside, given the uncertainty created by the events in the Middle East. Although the BoE event failed to impact Pound Sterling's valuation in a significant way, the broad-based US Dollar (USD) weakness allowed GBP/USD to push higher on Thursday. Read more ...

GBP/USD outlook: Cable stands at the front foot ahead of US labor report

GBPUSD remains steady in European trading on Friday and attempts above 1.22 mark, in extension of Thursday’s rise, sparked by BOE’s decision, which markets saw as a hawkish hold. Better than expected UK Oct Services PMI (although the sector contracts for the fourth consecutive month) added support to sterling as markets await release of key US labor report.

Non-farm payrolls are expected to rise by 180K in Oct compared to 336K new jobs added in Sep, average earning forecasted to tick up (Oct 0.3% m/m vs Sep 0.2%) and unemployment to stay unchanged at 3.8%. Read more...

GBP/USD Price Analysis: Holds positive ground above 1.2200, the next contention is seen at 1.2170

The GBP/USD pair holds positive ground for the second consecutive day during the early European session on Friday. As widely expected, the Bank of England (BoE) decided to maintain the interest rate unchanged at 5.25% on Thursday. During the press conference, BoE Governor Andrew Bailey stated that an additional rate hike could be appropriate, but Bailey disregarded rate cuts. The major pair currently trades around 1.2208, gaining 0.08% on the day.

According to the four-hour chart, GBP/USD holds above the 50- and 100-hour Exponential Moving Averages (EMAs), which supports the buyers for the time being. Furthermore, the Relative Strength Index (RSI) holds above 50 in bullish territory, suggesting the path of least resistance is to the upside. Read more...

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