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 weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

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 clings to gains as US-Iran conflict continues to underpin safe-haven assets

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar could keep the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.