Pound Sterling Price News and Forecast: GBP/USD bulls are taking a breather after five-day rally

GBP/USD outlook: Bulls are taking a breather after five-day rally

Cable eases from new multi-week high (1.2700) on Thursday, as bulls faced headwinds from significant resistances at 1.2700 zone, provided by the top of daily Ichimoku cloud and Apr 9-10 tops.

In addition, overbought conditions on daily chart prompted traders to partially collect profits from a five-day rally, which accelerated after US inflation data on Wednesday (GBPUSD advanced 0.8% for the day, in the biggest one-day gains since Apr 29). Read more…

GBP/USD Forecast: Pound Sterling bulls could retain control on soft US data

Following Wednesday’s impressive upsurge, GBP/USD continued to stretch higher and touches its strongest level since April 10 at 1.2700 during the Asian trading hours on Thursday. Although the pair retreats slightly in the European session, buyers could remain interested in case the US data disappoint.

The US Bureau of Labor Statistics (BLS) reported on Wednesday that the Consumer Price Index (CPI) rose 3.4% on a yearly basis in April. The annual core CPI increased 3.6% in the same period and both of these figures came in line with analysts’ estimates. With the immediate reaction, US Treasury bond yields turned south and the US Dollar (USD) came under heavy selling pressure as investors continued to price in a Federal Reserve (Fed) rate cut in September. According to the CME FedWatch Tool, the probability of the Fed leaving the policy rate unchanged in September declined toward 25% from 35% before the inflation data release. Read more…