Pound Sterling Price News and Forecast: GBP/USD to test the 1.2350 level next week

FXStreet Team FXStreet

GBP/USD Forecast: Pound sellers take action as key support fails

GBP/USD has extended its slide below 1.2500 after having closed the previous two days in negative territory. The broad-based dollar strength continues to weigh on the pair early Friday as investors gear up for the US inflation data.

On Thursday, the European Central Bank (ECB) said there will be a 25 basis points rate hike in July but failed to convince markets that they will opt for a 50 bps increase in September. The shared currency came under strong selling pressure and the British pound managed to capture some of the capital outflows out of the euro. With EUR/GBP falling nearly 100 pips from session highs on Thursday, GBP/USD's losses remained relatively limited. Read more...

GBP/USD to test the 1.2350 level next week – ING

GBP/USD is trading just below the 1.25 psychological mark, nearly unchanged for the day. Economists at ING expect the cable to break down to 1.2350 next week.

“The fact that sterling money markets still price a further 175 bp of Bank of England (BoE) tightening by year-end goes to show that investors struggle to buy into the idea of a pause anywhere.” Read more...

GBP/USD hits multi-week lows near 1.2420 pre-US CPI as UK growth fears linger

GBP/USD broke out to fresh multi-week lows in the 1.2420 area on Friday amid mixed FX market conditions and somewhat risk-averse pre-US inflation data trading conditions. The pair was last trading with losses of roughly 0.5% on the day, with bears eyeing a push lower into the 1.2300s in the week ahead should fears about the weakening UK economy linger. Read more...

GBP/USD

Overview
Today last price	1.2383
Today Daily Change	-0.0111
Today Daily Change %	-0.89
Today daily open	1.2494

Trends
Daily SMA20	1.2512
Daily SMA50	1.2666
Daily SMA100	1.3011
Daily SMA200	1.3279

Levels
Previous Daily High	1.2558
Previous Daily Low	1.2487
Previous Weekly High	1.266
Previous Weekly Low	1.2458
Previous Monthly High	1.2667
Previous Monthly Low	1.2155
Daily Fibonacci 38.2%	1.2514
Daily Fibonacci 61.8%	1.2531
Daily Pivot Point S1	1.2468
Daily Pivot Point S2	1.2442
Daily Pivot Point S3	1.2397
Daily Pivot Point R1	1.2539
Daily Pivot Point R2	1.2584
Daily Pivot Point R3	1.261

Author

FXStreet Team

FXStreet

EUR/USD: Gains remain capped by 1.1650

EUR/USD remains in recovery-mode following the closing bell in Euroland on Wednesday, hovering around the 1.1650 zone amid renewed downside pressure on the US Dollar and a marginal improvement in the global sentiment.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.