Pound Sterling Price News and Forecast: GBP/USD edges lower and is pressured by a bullish USD
GBP/USD slips below 1.2700 mark, downside seems limited ahead of FOMC minutes
The GBP/USD pair extends the overnight pullback from a multi-day top, around mid-1.2700s and continues losing ground through the Asian session on Wednesday. Spot prices slid back below the 1.2700 round-figure mark and remain well within the striking distance of the 100-day Simple Moving Average (SMA) support near the 1.2620-1.2615 region, or the lowest level since June 30 touched on Monday.
The underlying bullish sentiment surrounding the US Dollar (USD), bolstered by expectations that the Federal Reserve (Fed) will stick to its hawkish stance, turns out to be a key factor exerting some downward pressure on the GBP/USD pair. Investors seem convinced that the US central bank will keep interest rates higher for longer and the bets were reaffirmed by the upbeat US Retail Sales data released on Tuesday, which indicated that consumer spending held up well in July. Read more…
GBP/USD Price Analysis: Sellers remain hopeful around 1.2700 as UK inflation, Fed Minutes loom
GBP/USD retreats to 1.2700 as bulls fail to keep the reins ahead of Wednesday’s top-tier US/UK catalysts, after a surprise entry the previous day.
That said, the Cable pair eases within a 1.5-month-old symmetrical triangle following a corrective bounce after the UK’s latest employment report. It’s worth noting that the Pound Sterling’s latest restoration of the original trend could also be linked to the market’s cautious mood ahead of British inflation data and Monetary Policy Meeting Minutes of the Federal Open Market Committee (FOMC). Read more…