Pound Sterling Price News and Forecast: GBPUSD has displayed recovery after correcting to near 1.2200

FXStreet Team FXStreet

GBP/USD picks demand around 1.2200 as risk appetite improves further

The GBP/USD pair has rebounded after a corrective move to near the round-level support at 1.2200 in the early Toyo session. The Cable has resumed its upside journey as the risk appetite of the market participants has improved further.

GBP/USD

Overview
Today last price	1.2214
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.2214

Trends
Daily SMA20	1.2084
Daily SMA50	1.202
Daily SMA100	1.1683
Daily SMA200	1.2001

Levels
Previous Daily High	1.2247
Previous Daily Low	1.2088
Previous Weekly High	1.2102
Previous Weekly Low	1.1841
Previous Monthly High	1.2447
Previous Monthly Low	1.1992
Daily Fibonacci 38.2%	1.2186
Daily Fibonacci 61.8%	1.2149
Daily Pivot Point S1	1.212
Daily Pivot Point S2	1.2025
Daily Pivot Point S3	1.1961
Daily Pivot Point R1	1.2278
Daily Pivot Point R2	1.2342
Daily Pivot Point R3	1.2437

Cable breaking 1.2085 resistance, new support?

Cable has made a nice bullish turn from 1.1840 area so there can be more gains coming after current intraday pullback that already has a corrective look for wave 2/B. However, because of important US CPI and volatility, there is a chance that the pair will retest the lower supports still, near 1.2085.

GBP/USD holds above 1.3350 with the 200-day SMA capping gains

The British Pound appreciates against the US Dollar on Tuesday to trim previous losses and return to the 1.3375 area, aiming to retest resistance at the key 200-day Simple Moving Average. This is a popular indicator, which lies a few pips below 1.3400 and has been capping Pound’s recovery over the last two weeks.

EUR/USD consolidates gains above 1.1400

Following an earlier move to multi-day peaks past 1.1460, EUR/USD has now slipped back toward the low 1.1400s as the NA session draws to a close on Tuesday. Declining bets for potential Fed tightening later in the year coupled with poor US CPI data hurt the US Dollar, lending fresh legs to the pair and the broader risk-linked universe. Moving forward, the release of US PPI and Chair Warsh’s second testumony should keep investors entertained on Wednesday.

Gold climbs to near $4,050 on softer US CPI

Gold price rises to around $4,050 during the early Asian session on Wednesday. The precious metal rebounds as softer-than-expected US inflation data boosted hopes of the US Federal ‌Reserve adopting a less hawkish stance.

Ethereum climbs 7% amid declining inflation, weak retail and whale participation

Ethereum jumped more than 7% above $1,850 on Tuesday following a weaker-than-expected US Consumer Price Index report for June. The inflation data fell to 3.5% below expectations of 3.8%, marking a month-on-month decline of 0.4%, its largest monthly drop since May 2020. Core CPI also fell to 2.6% below forecasts of 2.8%.

Fed Chair Warsh reaffirms they will deliver price stability

While testifying on the Semiannual Monetary Policy Report before the US House Financial Services Committee, Fed Chairman Kevin Warsh reiterated that the Fed is making a commitment on price stability and the goal of 2% inflation.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.