GBP/USD Forecast: Pound Sterling could face strong resistance at 1.2200
GBP/USD came within a touching distance of 1.2100 on Wednesday and spent the Asian session in a tight channel on Thursday. In the European morning, the pair gathered recovery momentum and climbed above 1.2150.
US Treasury bond yields' rally continued mid-week as markets reacted to the lack of progress in US budget negotiations. Unless Republicans and Democrats reach an agreement to fund the government before the October 1 deadline, investors could refrain from betting on a risk rally. Read more…
Pound Sterling capitalizes on improved market mood as US Dollar corrects
The Pound Sterling (GBP) discovered a cushion near 1.2100 after a mild correction in the US Dollar improved the appeal for risk-sensitive assets. Earlier, the GBP/USD pair was on the backfoot as investors were dumping risk-perceived assets due to a cautious market mood. The GBP/USD outlook remains vulnerable as risks of a recession in the United Kingdom have increased due to vulnerable economic prospects. The UK’s Manufacturing and Services PMI, which gauge the health of both sectors, have fallen into contraction territory, while strong labor demand appears to be fading. Read more…
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