Did GBP/USD get caught in a false breakout? [Video]
GBPUSD could not find enough buyers to expand Friday’ bull run above its 200-day simple moving average (SMA), closing with marginal losses within the 1.2300 area on Monday. Given the current negative momentum in the price, the question now is whether the pair will stay resilient above the 1.2260-1.2300 key region. Read more…
GBP/USD Forecast: Pound Sterling turns fragile as safe-haven flows return
GBP/USD came under pressure and declined to the 1.2300 area in the European session on Tuesday. The pair’s near-term technical outlook points to a bearish tilt. In the absence of high-impact data releases, the risk perception could impact GBP/USD action in the second half of the day.
After advancing to its strongest level since mid-September at 1.2428 on Monday, GBP/USD turned south and closed in negative territory. The recovery seen in the US Treasury bond yields helped the US Dollar (USD) find demand and didn’t allow the pair to build on earlier gains. Read more…
Pound Sterling extends downside as concerns over UK recession mount
The Pound Sterling (GBP) faces a sell-off on Tuesday, paring some gains from the recent rally, as risks of a slowdown in the United Kingdom economy are unabated due to higher interest rates by the Bank of England (BoE). The GBP/USD pair recovered sharply on Friday and Monday but struggled to maintain strength and trades around 1.2330 amid an absence of fundamental cushion for the Pound Sterling.
The recent recovery in the Cable was backed by an improvement in the market sentiment due to expectations of no more interest rate hikes from the Federal Reserve (Fed) and no further escalation in Middle East tensions. However, risks of the UK economy entering into a recession are high as sectors including manufacturing, services, and housing are struggling to absorb the effect of higher interest rates by the BoE. Read more…
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