Pound Sterling Price News and Forecast: GBP/USD Strong risk of additional weakness towards the 1.17/1.18 zone

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling recovery to remain limited unless there is a risk rally

GBP/USD extended its slide in the Asian trading hours on Tuesday and touched its weakest level since March below 1.2100. The pair's technical outlook points to oversold conditions in the near term. Considering how GBP/USD continued to push lower for several days despite staying in the oversold territory in late September, a technical correction could remain limited unless there is a convincing improvement in risk sentiment.

As the US bond sell-off picked up steam in the American session on Monday, the US Dollar (USD) gathered strength and forced GBP/USD to turn south. Additionally, the ISM Manufacturing PMI survey showed a noticeable improvement in the manufacturing sector's activity, in addition to a further decline in input inflation and an expansion in employment in September, and allowed the USD to continue to outperform its rivals. Read more...

GBP/USD Strong risk of additional weakness towards the 1.17/1.18 zone – Scotiabank

The GBP/USD pair tests retracement support just below 1.21. Economists at Scotiabank analyze Cable’s technical outlook. Read more...

Pound Sterling remains under pressure on UK's economic turmoil

The Pound Sterling (GBP) witnessed a sell-off on Monday after a pullback move and has extended the downside move on Tuesday as investors foresee a slowdown in the United Kingdom’s economy due to economic turmoil. The GBP/USD pair weakened after S&P Global reported the Manufacturing PMI contracted for the 14th time in a row in September as firms underutilized their capacity, cut inventories sharply, and trimmed their workforce amid a poor demand outlook.

While investors think the Bank of England (BoE) is done hiking interest rates after it paused its policy-tightening spell last month to avert recession fears, policymaker Katherine Mann has a different verdict from her teammates. Read more...

GBP/USD

Overview
Today last price	1.2071
Today Daily Change	-0.0016
Today Daily Change %	-0.13
Today daily open	1.2087

Trends
Daily SMA20	1.2347
Daily SMA50	1.2574
Daily SMA100	1.2619
Daily SMA200	1.2436

Levels
Previous Daily High	1.222
Previous Daily Low	1.2086
Previous Weekly High	1.2272
Previous Weekly Low	1.2111
Previous Monthly High	1.2713
Previous Monthly Low	1.2111
Daily Fibonacci 38.2%	1.2137
Daily Fibonacci 61.8%	1.2169
Daily Pivot Point S1	1.2042
Daily Pivot Point S2	1.1998
Daily Pivot Point S3	1.1909
Daily Pivot Point R1	1.2176
Daily Pivot Point R2	1.2265
Daily Pivot Point R3	1.2309

Author

FXStreet Team

FXStreet

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