Pound Sterling Price News & Forecast: GBP/USD attracts some buyers, though it lacks follow-through

British Pound bounces off one-week low vs USD amid Iran diplomacy hopes, ahead of UK CPI

The GBP/USD pair edges higher during the Asian session on Wednesday, snapping a four-day losing streak to the 1.3360 area, or a one-week low, touched the previous day. Spot prices, however, lack follow-through buying and trade below the 1.3400 mark, warranting caution before confirming that the recent pullback from an over two-month high has run its course.

The US Dollar (USD) pauses following a four-day rally to a one-week high amid hopes that US-Iran diplomacy could ease energy prices and temper hawkish US Federal Reserve (Fed) expectations. This, in turn, is seen as a key factor lending support to the GBP/USD pair. However, the geopolitical risk remains in play amid a further escalation of tensions between the US and Iran. Read more...

British Pound Sterling gets a decent jobs report and sells off anyway

The British Pound received a labour market report on Tuesday that beat consensus on nearly every line, and sold off anyway. Sterling slid from a London morning high just above 1.3450 to a New York low just above 1.3350, knifing through the 50-day and 200-day Exponential Moving Averages that sit converged just below 1.3400. GBP/USD trades near 1.3380 late in the session, the weakest of the majors on the day, on track for a fourth consecutive daily decline, and holding its first session beneath both long-term averages since the mid-July rebound began. More than a third of that rebound off the summer base near the 1.3150 area is already gone.

On the surface, Tuesday's labour market data argued for a Pound bid rather than a fourth day of selling. Employment rose 147K in the three months to May against 100K prior, the claimant count climbed just 6.7K in June against a 28.3K consensus, and the unemployment rate slipped to 4.9% when the market expected 5%. The blemish sat in the pay figures, where average earnings including bonuses slowed to 4.3% against a 4.5% consensus, extending the cooling trend the Bank of England has spent months waiting for. Read more...

GBP/USD Price Forecast: Tests nine-day EMA support near 1.3400

GBP/USD remains weaker for the fourth consecutive day, trading around 1.3430 during the European hours on Tuesday. The technical analysis of the daily chart indicates a prevailing bullish bias as the pair remains within the ascending channel.

The GBP/USD pair is holding a constructive bullish bias as spot remains above both the nine-day and 50-day Exponential Moving Averages (EMAs). The alignment of shorter and longer EMAs below price suggests an underpinning uptrend, while the 14-day Relative Strength Index (RSI) at roughly 55 points to steady, rather than overstretched, positive momentum. Read more...