Pound Sterling Price News and Forecast: GBP/USD Forecast – No signs of a slowdown as risk flows dominate
GBP/USD outlook: Rises above psychological 1.30 barrier following better than expected UK GDP data
Cable surged through psychological 1.30 barrier on Thursday and hit the highest since mid-April 2022, after receiving fresh boost from better than expected UK May GDP data. UK economy contracted by 0.1% in May, beating expectations for 0.3% contraction, adding to pound’s positive sentiment on further weakening of the US dollar, following below-forecast US June CPI.
Recent break of 200WMA (1.2882) and lift above 1.30 level, generate bullish signals which will be verified on weekly close above these levels and open way for extension through initial barrier at 1.3140 (monthly cloud) top), towards 1.3328 (Fibo 76.4% retracement of 1.4249/1.0348 downtrend). Read more…
GBP/USD Forecast: No signs of a slowdown as risk flows dominate
GBP/USD extended its rally and reached its highest level since April 2022 near 1.3050 after having closed the fifth straight day in positive territory on Wednesday. Although the pair remains technically overbought, the risk-positive market environment could delay a downward correction.
The US Dollar Index (DXY), which tracks the US Dollar’s (USD) performance against a basket of six major currencies, lost over 1% on Wednesday and is down nearly 2% so far this week. After the data published by the US Bureau of Labor Statistics revealed that inflation in the US, as measured by the change in the Consumer Price Index (CPI), declined sharply to 3% o a yearly basis in June from 4% in May, the USD came under heavy selling pressure. Additionally, the monthly Core CPI, which excludes volatile food and energy prices, rose only 0.2% in June, the lower one-month increase since August 2021. Read more…
Pound Sterling prints more gains as Jeremy Hunt assures inflation to return to 2%
The Pound Sterling (GBP) has climbed above the 1.3000 psychological resistance, continuing its five-day winning spell despite the rising burden of higher interest rates by the Bank of England (BoE) on the United Kingdom’s manufacturing sector. The GBP/USD pair has been filled with an adrenaline rush as the market mood has turned extremely cheerful, and the BoE is expected to continue its policy-tightening spell in spite of building pressure on the economic outlook.
United Kingdom’s Industrial and Manufacturing Production are contracting as firms are avoiding making applications for fresh credit to dodge higher interest obligations. Subdued manufacturing activities and rising jobless claims are meaningful signs of the heavy burden of aggressive interest rate hikes by the Bank of England. Read more…