GBP/USD Forecast: Pound Sterling could push higher once 1.2700 is confirmed as support
GBP/USD broke above its three-week-old trading range and touched its highest level since early February above 1.2700 on Thursday. The broad-based selling pressure surrounding the US Dollar (USD) fuels the pair's rally as investors' focus shifts to the UK and US PMI data. Market participants will also pay close attention to the risk perception as US stock index futures post impressive gains in the European morning.
Improving market mood caused the USD to lose interest during the Asian trading hours on Thursday. Although Wall Street's main indexes were little changed for the day, upbeat earnings figures from Nvidia after the closing bell attracted risk flows. At the time of press, Nasdaq futures were up nearly 2% on the day and S&P futures were rising 1%. If the risk rally gains momentum in the second half of the day, the USD could continue to weaken against its rivals. Read more...
GBP/USD Price Analysis: The first upside barrier is seen at 1.2660
The GBP/USD pair trades on a stronger note below the mid-1.2600s during the early European section on Thursday. Investors await the UK S&P Global/CIPS PMI report for February. The manufacturing PMI figure is expected to improve to 47.5 in February from 47.0 in January, while the Services PMI figure is projected to drop to 54.1 in January versus 54.3% prior. At press time, GBP/USD is trading at 1.2640, up 0.06% on the day.
From a technical perspective, GBP/USD remains in a bullish mood as the pair is above the 100-period Exponential Moving Average (EMA) on the four-hour chart. Additionally, the Relative Strength Index (RSI) lies above the 50 midlines, supporting the upward momentum for the pair. Read more...
Pound Sterling falls slightly from day's high on mixed PMI data
The Pound Sterling (GBP) faces some selling pressure in Thursday’s European session as preliminary PMIs reported by the S&P Global/CIPS for February remain mixed. The Manufacturing PMI at 47.1 was slightly above the prior reading of 47.0 but failed to match expectations of 47.5. The Services PMI was surprisingly unchanged at 54.3 while investors anticipated a decline to 54.1. The Composite PMI was higher at 53.3 against expectations and the former reading of 52.9.
The broader outlook of the Pound Sterling is bullish as the market sentiment remains upbeat. The GBP/USD pair remains upbeat even though Bank of England (BoE) policymaker Swati Dhingra cautioned about downside risks to the United Kingdom economy due to high interest rates. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds steady near 1.0800 after German sentiment data
EUR/USD stays in a consolidation phase at around 1.0800 on Tuesday after closing in positive territory on Monday. The upbeat ZEW sentiment data from Germany fails to provide a boost to the Euro as investors await producer inflation data from the US and Fed Chairman Powell's speech.
GBP/USD drops below 1.2550 after UK jobs data
GBP/USD struggles to build on Monday's gains and trades in the red below 1.2550 in the European session on Tuesday. The data from the UK showed that the Unemployment Rate edged higher to 4.3% in the three months to March as forecast, failing to help Pound Sterling find demand.
Gold price edges higher ahead of US PPI data, Fed’s Powell speech
The gold price (XAU/USD) rebounds despite the consolidation of the US Dollar (USD) on Tuesday. The upside of yellow metal might be limited as traders might wait on the sidelines ahead of key US inflation data this week.
Ethereum knocking at support’s door
Crypto market capitalisation rose 0.8% over the past 24 hours to 2.2 trillion, but growth exceeded 2% for most of the period. However, it dipped at the start of active European trading, temporarily returning to levels of a day ago.
Entering a crucial run of data for financial markets
We are entering a crucial period for financial markets and forecasters as Americans' near-term inflation expectations rise again. Upcoming reports on the CPI and PPI for April, along with new data on retail sales and industrial production, will provide valuable insights.