Pound Sterling Price News and Forecast: GBP/USD surges towards 1.3700 as dollar dives post-CPI

UK PM Johnson is in dire straits, opening door to political turmoil, Sunak would be pound-positive

Bring your own booze, to a work event? Prime Minister Boris Johnson finds it harder to explain his behavior and he may be on his way out. That means short-term pain for sterling, but the potential for gains afterward. Johnson has finally admitted he participated in a party in the garden of his residence but said he thought it was a work event. The unconvincing performance was heavily criticized by the opposition and caused unease among the PM's Conservative Party. Read more...

GBP/USD surges towards 1.3700 as dollar dives post-CPI, but now looking overbought

GBP/USD upside has accelerated in recent trade as the US dollar suffers substantial post Consumer Price Inflation (CPI) data weakness, with the pair eyeing a bullish break above a key long-term downtrend and the key 1.3700 level. At current levels just below the big figure, cable is trading at its highest since early November, up just under 0.5% on the day and now looking at gains of about 0.8% on the week. If the pair can close out the week at current levels and in the green, that would mark a fourth consecutive week of gains during which time GBP/USD would have rallied a stunning 3.5%. The pair is over 4.0% up from its mid-December lows in the mid-1.3100s. Read more...

GBP/USD Forecast: Next bullish target aligns at 1.3680

GBP/USD has capitalized on the selling pressure surrounding the dollar and reached its strongest level since early November at 1.3645. Since then it has gone into a consolidation phase early Wednesday. The pair could target 1.3680 as long as support at 1.3600 holds. FOMC Chairman Jerome Powell adopted a cautious tone regarding the timing of the balance sheet reduction on Tuesday and caused the greenback to lose interest. Read more...