Pound Sterling Price News and Forecast: GBP/USD attracts buyers for the second successive day
GBP/USD advances to 1.2625 on softer USD, remains below 100-day SMA support breakpoint
The GBP/USD pair gains some positive traction for the second successive day on Tuesday and recovers further from its lowest level since June 13, around the 1.2550-1.2545 area touched last week. Spot prices trade around the 1.2620-1.2625 zone during the Asian session, up over 0.15% for the day, though remain below the 100-day Simple Moving Average (SMA) support breakpoint.
Retreating US Treasury bond yields drags the US Dollar (USD) away from a nearly three-month top set last week, which, in turn, is seen as a key factor pushing the GBP/USD pair higher. Apart from this, a generally positive risk tone, bolstered by new measures rolled out by China over the weekend to draw investors back into its battered stock markets, further undermines the safe-haven Greenback. The British Pound (GBP), on the other hand, draws support from the Bank of England (BoE) Deputy Governor Ben Broadbent’s hawkish remarks on Saturday, saying that policy rates may well have to remain in restrictive territory for some time. Read more…
GBP/USD Price Analysis: Cable braces for a bumpy road, 1.2630 guards immediate recovery
GBP/USD grinds higher past 1.2600 after an upbeat start of the week, picking up bids near 1.2610 amid early Tuesday morning in Asia. In doing so, the Cable pair extends the late Friday’s corrective bounce off a three-month-old horizontal support zone towards the previously key technical supports.
That said, a convergence of the 61.8% Fibonacci retracement of the May-July upside and the previous support line from late June, around 1.2630 at the latest, restricts immediate recovery of the Pound Sterling buyers, especially amid the bearish MACD signals. Read more…