Pound Sterling Price News and Forecast: GBP/USD weakens to near 1.3495 during Monday’s session.

FXStreet Team FXStreet

GBP/USD Weekly Forecast: Pound Sterling finds support heading into a holiday-shortened week

The Pound Sterling (GBP) faced rejection yet again, just shy of the 1.3600 mark against the US Dollar (USD), leading to a solid pullback in the GBP/USD pair from one-month highs to eight-day lows. However, the renewed USD weakness heading into the weekend opened the door for a decisive recovery in the pair.

A down week, overall, for GBP/USD, characterized mainly by a broad-based US Dollar resurgence until Federal Reserve Chairman Jerome Powell's speech at the annual Jackson Hole Symposium. Two primary catalysts, in risk aversion and reduced dovish sentiment around the US Federal Reserve, helped the Greenback stage a decent comeback against its major currency rivals. Read more...

GBP/USD attracts some sellers below 1.3500 on renewed US Dollar demand

The GBP/USD pair faces some selling pressure around 1.3495 during the Asian session on Monday. The major pair edges lower amid the renewed US Dollar (USD) demand. However, dovish remarks from the Federal Reserve (Fed) Chair Jerome Powell might cap the GBP/USD’s downside. Later on Monday, the US New Home Sales and Chicago Fed National Activity Index data will be published.

Fed's Powell said on Friday at the Jackson Hole symposium that the central bank is headed for an interest-rate cut as soon as its next policy meeting in September. Powell further stated that the US economy is facing a “challenging situation,” with inflation risks now tilted to the upside and employment risks to the downside. Growing expectations of US Fed rate cuts could weigh on the Greenback and help limit the major pair’s losses. Read more...

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