GBP/USD Price Forecast: Finds ground slightly below 20-day EMA
The British Pound (GBP) is marginally higher at around 1.3545 against the US Dollar (USD) during the European trading session on Monday. The GBP/USD pair rebounds as the US Dollar corrects after a strong upside move on Friday.
As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.15% lower to near 99.53. The US Dollar gained significantly on Friday, following a speech from Federal Reserve (Fed) Chair Kevin Warsh at the Jackson Hole Symposium, where he warned of upside inflation risks. Read more…
British Pound holds losses amid geopolitical tensions, Fed tightening hopes
The British Pound (GBP) edges up on Monday but remains close to two-week lows against the US Dollar (USD). Risk aversion amid fresh hostilities between the US and Iran and rising bets that the US Federal Reserve (Fed) might finally hike rates in September are keeping the Greenback’s dips subdued at the start of the week.
Investors’ appetite for risk remains frail on Monday, following reports that the US launched the first attack on Iran in about a month, targeting missile launchers on Larak Island, where the Islamic Revolutionary Guard Corps (IRGC) were allegedly preparing rockets to place sea mines in the Strait of Hormuz. Read more…
British Pound bounces off over one-week low vs soft USD; upside potential seems limited
The GBP/USD pair edges higher at the start of a new week, reversing a part of Friday’s heavy losses to over a one-week trough. Spot prices, however, lack bullish conviction and trade below mid-1.3500s during the Asian session, warranting caution before confirming that the recent pullback from the highest level since February, touched earlier this month, has run its course.
The US Dollar (USD) pauses after Friday’s strong move up to a nearly two-week high amid month-end rebalancing and acts as a tailwind for the GBP/USD pair. The British Pound (GBP), on the other hand, draws support from UK Chancellor John Healey’s emphasis on maintaining fiscal discipline as the top priority for Prime Minister Andy Burnham’s government ahead of the Autumn Budget on October 28. Read more…
