Pound Sterling Price News and Forecast: GBP/USD under pressure as growth prospects deteriorate

FXStreet Team FXStreet

GBP/USD pokes 1.2200 at two-year low as risk-aversion joins Brexit woes, softer UK data

GBP/USD licks its wounds near 1.2200, after refreshing a two-year low during the uninterrupted fall in the last six days, during the initial Asian session on Friday. In addition to the broad US dollar strength, pessimism surrounding Brexit and the UK’s economic fears are extra negatives that drowned the cable during the last few days.

GBP/USD

Overview
Today last price	1.2212
Today Daily Change	0.0012
Today Daily Change %	0.10
Today daily open	1.22

Trends
Daily SMA20	1.2618
Daily SMA50	1.2915
Daily SMA100	1.3221
Daily SMA200	1.3405

Levels
Previous Daily High	1.2256
Previous Daily Low	1.2165
Previous Weekly High	1.2638
Previous Weekly Low	1.2276
Previous Monthly High	1.3167
Previous Monthly Low	1.2411
Daily Fibonacci 38.2%	1.22
Daily Fibonacci 61.8%	1.2221
Daily Pivot Point S1	1.2158
Daily Pivot Point S2	1.2116
Daily Pivot Point S3	1.2068
Daily Pivot Point R1	1.2249
Daily Pivot Point R2	1.2298
Daily Pivot Point R3	1.2339

GBP/USD: Pound under pressure as growth prospects deteriorate

The deterioration in the growth outlook in the United Kingdom has been negative for the pound, explained analysts at CIBC. They forecast the GBP/USD pair will remain around 1.22 during the next months. “The updated BoE macro outlook now reflects a negative GDP trajectory in 2023, the bank now assumes -0.25% rather than 1.25% previously.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.