GBP/USD Price Analysis: Hangs near multi-month low, seems vulnerable below 200-day SMA
The GBP/USD pair continues with its struggle to gain any meaningful traction and languishes near its lowest level since early June touched on Monday. Spot prices currently trade around the 1.2380-1.2375 region and seem vulnerable to prolonging the recent downward trajectory witnessed over the past two months or so.
Firming expectations that the Bank of England (BoE) is nearing the end of its rate-hiking cycle continue to undermine the British Pound (GBP) and act as a headwind for the GBP/USD pair. The US Dollar (USD), on the other hand, remains on the defensive below a six-month top set last week and helps limit losses for spot prices. Traders also seem reluctant to place aggressive bets and prefer to wait on the sidelines ahead of this week’s key central bank event risks – the highly-anticipated FOMC decision on Wednesday and the pivotal BoE meeting on Thursday. Read more…
GBP/USD languishes near multi-month low, consolidates in a range below 1.2400 mark
The GBP/USD pair extends its consolidative price moves for the second successive day on Tuesday and remains confined in a range below the 1.2400 mark during the Asian session. Spot prices, meanwhile, languish near the lowest level since June touched last week and the lack of buying interest suggests that the path of least resistance is to the downside.
The British Pound (GBP) continues with its relative underperformance in the wake of diminishing odds for more aggressive policy tightening by the Bank of England (BoE), though subdued US Dollar (USD) demand lends some support to the GBP/USD pair. BoE Governor Andrew Bailey had told lawmakers recently that the central bank is now “much nearer” to ending its run of interest rate increases. This, along with reviving recession fears and signs that the UK labour market is cooling, might put pressure on the BoE to pause its rate-hiking cycle. Read more…
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