Pound Sterling Price News and Forecast: GBP/USD to end the year at 1.29 on a modest Brexit deal – CIBC


GBP/USD struggles near daily lows, just above 1.2800 mark

The GBP/USD pair refreshed daily lows during the early European session, albeit managed to find some support ahead of the 1.2800 mark and quickly recovered few pips thereafter.

The pair came under some renewed selling pressure on Wednesday and for now, seems to have snapped two consecutive days of the winning streak. The British pound was being weighed down by the BoE Governor Andrew Bailey's dovish comments on Tuesday, which coupled with a modest pickup in the US dollar demand exerted pressure on the GBP/USD pair.

Speaking at an online event organized by Queen's University Belfast, Bailey reiterated that the BoE was not out of ammunition with regards to additional quantitative easing. Bailey further added that policymakers have not ruled out the possibility of using negative interest rates but are realistic about challenges from banking retail deposits. Read Moor...

GBP/USD to end the year at 1.29 on a modest Brexit deal – CIBC

Sterling has depreciated by around 5% versus the USD in September as the Brexit clock is ticking. Jeremy Stretch from CIBC Capital Markets expects a modest deal to be reached, supporting GBP resilience.

Key quotes: "While we still expect a deal even this late, it will likely be far from comprehensive. While the UK has placed a self-imposed October 15th deadline on discussions, in line with the EU leaders summit, we would not be surprised if talks extend at least until the end of October. As the timeline tightens, we expect sterling to continue to be whipsawed by Brexit headlines. We underline that the reaction to a deal or no-deal scenario is likely to be far from symmetrical." Read Moor...

GBP/USD: There is room for more falls after ugly US debate

GBP/USD has been on the back foot as the safe-haven dollar gains following the presidential debate. The pound's failure to benefit from upbeat GDP figures also points lower, Yohay Elam, an analyst at FXStreet, reports.

Key quotes: "For markets, the 90-minute televised debate turned from ugly and chaotic to ominous for the fate of the world's strongest country and largest economy. President Trump refused to say if he would accept the election results and also seemed to encourage a white supremacist group. Fears of a contested election and a constitutional crisis sent stocks down and the safe-haven dollar higher, pushing GBP/USD lower." Read Moor...

GBP/USD

Overview
Today last price 1.283
Today Daily Change -0.0035
Today Daily Change % -0.27
Today daily open 1.2865
 
Trends
Daily SMA20 1.2936
Daily SMA50 1.3024
Daily SMA100 1.2744
Daily SMA200 1.272
 
Levels
Previous Daily High 1.2903
Previous Daily Low 1.2823
Previous Weekly High 1.2967
Previous Weekly Low 1.2676
Previous Monthly High 1.3396
Previous Monthly Low 1.2982
Daily Fibonacci 38.2% 1.2872
Daily Fibonacci 61.8% 1.2853
Daily Pivot Point S1 1.2824
Daily Pivot Point S2 1.2783
Daily Pivot Point S3 1.2744
Daily Pivot Point R1 1.2905
Daily Pivot Point R2 1.2944
Daily Pivot Point R3 1.2985

 

 

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