GBP/USD Forecast: 1.2200 proves to be a tough resistance to crack
GBP/USD opened with a bullish gap and touched its highest level in five weeks at 1.2230 before retreating below 1.2200. The broad-based US Dollar weakness, however, helps the pair keep its footing as investors reassess the possibility of the US Federal Reserve leaving its policy rate unchanged at the upcoming meeting.
Risk flows dominated the markets in the early Asian session as markets reacted to news that UBS Group AG has agreed to buy Credit Suisse Group AG. More importantly, the Fed reinstated daily swaps to the Bank of Canada (BoC), the Bank of Japan (BoJ), the Swiss National Bank (SNB) and the European Central Bank (ECB) to provide additional liquidity if needed. Read more …
GBP/USD: GBP/USD: Further gains in the pipeline above 1.2220 – UOB
24-hour view: “We highlighted last Friday that ‘Mild upward pressure could lead to GBP edging higher but a sustained advance above 1.2150 is unlikely’. The anticipated advance exceeded our expectations as GBP soared to 1.2201 before closing on a firm note at 1.2181 (+0.58%). While GBP could advance further, a sustained rise above 1.2220 appears unlikely. Support is at 1.2155, followed by 1.2125.”
Next 1-3 weeks: “Our latest narrative was from last Thursday (16 Mar, spot at 1.2075) where GBP is likely to trade in a broad consolidation range, expected to be between 1.1950 and 1.2190. GBP edged slightly above 1.2190 on Friday (high of 1.2201) and upward momentum is beginning to build. Read more…
GBP/USD sticks to modest gains around 1.2200 mark, just below multi-week high
The GBP/USD pair struggles to capitalize on its modest intraday positive move and trims a part of the early gains to the highest level since February 14 touched this Monday. The pair trades just below the 1.2200 mark through the first half of the European session and remains at the mercy of the US Dollar (USD) price dynamics.
The prevalent risk-off mood – as depicted by a weaker tone around the equity markets – drives some haven flows towards the Greenback and acts as a headwind for the GBP/USD pair. Despite the recent emergency liquidity measures and multi-billion-dollar lifelines for troubled US and European banks, market participants remain concerned about the contagion risk and the possibility of a full-blown global banking crisis. This, in turn, continues to weigh on investors' sentiment and benefits traditional safe-haven assets, including the USD. Read more…
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