GBP/USD Price Analysis: Cable buyers run out of steam below 1.2600, UK employment, US inflation eyed
GBP/USD holds lower ground near the intraday bottom as it prints the first daily loss in four amid early Monday in Europe, mildly offered near 1.2570 at the latest. That said, the Cable pair rose in the last two consecutive weeks amid a broad US Dollar fall but concerns about the UK’s economic health and the market’s positioning for this week’s key data/events weigh on the Pound Sterling pair of late.
Also read: GBP/USD holds steady near multi-week top as traders await this week's key data/event risks
Technically, a horizontal area comprising multiple levels marked since late April, around 1.2580-85, joins the overbought RSI (14) line to favor the latest weakness in the Cable pair. Adding strength to the downside bias is the looming bear cross on the MACD indicator. Read more…
GBP/USD holds steady near multi-week top as traders await this week's key data/event risks
The GBP/USD pair kicks off the new week on a subdued note and consolidates its recent gains to a one-month high touched on Friday. Spot prices trade around the 1.2575-1.2580 region, nearly unchanged for the day through the Asian session as traders await this week's important macro data and the key central bank event risk before placing fresh directional bets.
In the meantime, expectations for more interest rate hikes by the Bank of England (BoE) act as a tailwind for the British Pound and continue to lend support to the GBP/USD pair. In fact, the markets seem convinced that the BoE will be far more aggressive in policy tightening to contain stubbornly high inflation and anticipate another 25 bps lift-off on June 22. The US Dollar, on the other hand, holds just above the monthly low touched last Thursday in the wake of the uncertainty over the Federal Reserve's (Fed) rate hike path. Read more…
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