GBP/USD Forecast: Pound Sterling to extend correction once below 1.2170
GBP/USD has started to fluctuate in a narrow channel at around 1.2200 on Tuesday after having declined sharply during the American trading hours on Monday. 1.2170 aligns as key technical support in the near term and sellers could take action in case the pair breaks below that level.
The negative shift witnessed in risk sentiment caused GBP/USD to turn south in the second half of the day on Monday. Additionally, the data from the US revealed that the ISM Services PMI improved to 56.5 in November from 54.4 in October, providing a boost to the US Dollar and further weighing on the pair. Read more...
GBP/USD Price Analysis: Trades with modest gains above 1.2200 mark, 200 DMA holds the key
The GBP/USD pair finds some support near the very important 200-day SMA and stalls the previous day's retracement slide from its highest level since June 17. Spot prices, however, struggle to gain any meaningful traction and seesaw between tepid gains/minor losses around the 1.2200 mark through the mid-European session.
The US Dollar struggles to capitalize on the overnight solid recovery move from over a five-month low and turns out to be a key factor lending support to the GBP/USD pair. That said, expectations that the Fed may raise interest rates more than projected act as a tailwind for the buck. This, along with a bleak outlook for the UK economy, keeps a lid on any meaningful upside for spot prices. Read more...
GBP/USD drops below 1.2200 as investors see Fed’s interest rate peak at 5.75%
The GBP/USD pair surrendered the psychological support of 1.2200 in the early European session. The Cable witnessed selling pressure after failing to extend recovery above 1.2220 displayed in Tokyo. The major is expected to remain in the grip of bears amid a risk-off market mood.
An improvement in safe-haven’s appeal has supported the US Dollar index (DXY) to extend gains to near Monday’s high of around 105.40. Also, the 10-year US Treasury yields have scrolled above 3.59% and are expected to advance further amid rising expectations of a higher interest rate peak by the Federal Reserve (Fed). Meanwhile, S&P500 futures are displaying a lackluster performance showing an inability in recovering losses reported on Monday. Read more...
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