GBP/USD Forecast: Risky to bet on a steady Pound Sterling recovery
GBP/USD broke through 1.2200 on Tuesday and extended its slide to a fresh six-month low below 1.2150. The near-term technical picture shows that the pair remains oversold. Investors, however, could opt to wait for a steady improvement in risk mood before positioning themselves for a convincing recovery in the pair.
Wall Street's main indexes lost more than 1% on Tuesday amid growing fears over a US government shutdown. Although US stock index futures trade modestly higher, participants could refrain from betting on a risk rally unless Republicans and Democrats agree on a bipartisan spending bill ahead of Sunday's deadline. Read more...
How much further will the GBP/USD drop?
In today's analytical review, our attention turns to the GBPUSD pair, colloquially known as 'cable', which has been caught in a notable downward trajectory, particularly in recent days. The unfavorable performance throughout September, compounded by a lackluster August, prompts an essential question: how much further can this pair potentially descend?
The initial signs of distress surfaced towards the tail end of July and early August. This was marked by the breach of two critical uptrend lines, highlighted in blue and red. Since that pivotal juncture, the descent has been palpable. Read more...
Pound Sterling drops as UK’s high CPI and weak labor demand trigger stagflation risk
The Pound Sterling (GBP) extends its five-day losing spell as investors foresee the United Kingdom economy shifting into a recession due to deteriorating labor market conditions and a poor demand outlook. The GBP/USD pair is expected to deliver more losses as a pause in the rate-tightening cycle by the Bank of England (BoE) would elevate consumer inflation expectations.
BoE’s unexpected pause in its historically aggressive rate cycle has not only highlighted policymakers’ concern about the UK’s economic turmoil, but it has also raised uncertainty over the inflation outlook. Britain’s energy prices have been propelled by the global oil rally and are set to make inflation hotter again. Read more...
|Today last price||1.2142|
|Today Daily Change||-0.0017|
|Today Daily Change %||-0.14|
|Today daily open||1.2159|
|Previous Daily High||1.2216|
|Previous Daily Low||1.2153|
|Previous Weekly High||1.2425|
|Previous Weekly Low||1.2231|
|Previous Monthly High||1.2841|
|Previous Monthly Low||1.2548|
|Daily Fibonacci 38.2%||1.2177|
|Daily Fibonacci 61.8%||1.2192|
|Daily Pivot Point S1||1.2136|
|Daily Pivot Point S2||1.2113|
|Daily Pivot Point S3||1.2073|
|Daily Pivot Point R1||1.2199|
|Daily Pivot Point R2||1.2238|
|Daily Pivot Point R3||1.2261|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.