Pound Sterling Price News and Forecast: The GBP/USD shift – Decoding the head and shoulders signal

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling looks fragile to start new week

GBP/USD climbed above 1.2600 in the Asian trading hours on Monday but retreated below that level in the early European session. The pair remains technically bearish but a positive shift in risk sentiment could help Pound Sterling limit its losses.

After touching its weakest level since mid-June below 1.2550 in the early American session on Friday, GBP/USD managed to erase some of its daily losses. Nevertheless, the pair ended the week in negative territory, losing more than 100 pips. Read more...

The GBP/USD shift: Decoding the head and shoulders signal

The GBPUSD pair, often referred to as the "cable" in trading parlance, has been an emblem of currency trading for decades. This evergreen trading pair has recently flashed some intriguing signals, which could pave the way for a fresh narrative in its trading direction.

Over the last week, this pair has sketched out a classic head and shoulders formation, outlined conspicuously in blue. For those less versed in technical jargon, the head and shoulders pattern is a reliable indicator that a currency pair, or any tradable asset for that matter, may be about to take a bearish turn, effectively terminating its prior uptrend. Read more...

Pound Sterling remains delicate amid deepening recession risks

The Pound Sterling (GBP) recovered after printing a fresh 14-week low, but the broader bias remains bearish as the British economy is exposed to a possible recession due to an aggressive rate-tightening cycle by the Bank of England (BoE). The GBP/USD pair communicates fears about rising interest rates as the tight labor market is losing its appeal, and firms have reported a decline in production due to a dismal demand outlook.

Investors are worried that the UK economy could shift into a recession as the housing sector, economic activities and the labor market are struggling to carry the burden of a restrictive monetary policy. Read more...

GBP/USD

Overview
Today last price	1.2583
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.258

Trends
Daily SMA20	1.272
Daily SMA50	1.2788
Daily SMA100	1.264
Daily SMA200	1.24

Levels
Previous Daily High	1.2655
Previous Daily Low	1.2548
Previous Weekly High	1.28
Previous Weekly Low	1.2548
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.2589
Daily Fibonacci 61.8%	1.2614
Daily Pivot Point S1	1.2534
Daily Pivot Point S2	1.2488
Daily Pivot Point S3	1.2427
Daily Pivot Point R1	1.2641
Daily Pivot Point R2	1.2701
Daily Pivot Point R3	1.2747

Author

FXStreet Team

FXStreet

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