GBP/USD Forecast: Pound Sterling stays below key resistance levels
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $479.76 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- GBP/USD moves sideways slightly above 1.2600 on Friday.
- Improving risk mood could help the pair stretch higher ahead of the weekend.
- GBP/USD needs to stabilize above 1.2650 to attract additional buyers.
GBP/USD declined below 1.2600 on Thursday but managed to stabilize above that level early Friday. In the absence of high-tier data releases, the risk perception could impact the US Dollar's (USD) valuation.
The USD benefited from recovering US Treasury bond yields on Thursday and weighed on GBP/USD. Hawkish remarks from Bank of England (BoE) officials and the modest improvement seen in risk mood, however, helped the pair erase its losses.
Bank of England (BoE) policymaker Catherine Mann explained on Thursday that she voted in favor of a rate hike in the last policy meeting because she is not convinced that the near-term declaration in headline inflation will continue. Early Friday, BoE policymaker Jonathan Haskel acknowledged that inflation pressures might be on the wane but he noted that he would need further evidence of a slowdown before altering his view on the rate outlook.
Following Thursday's indecisive action in Wall Street, US stock index futures trade modestly higher in the European session on Friday. In case there is a bullish opening, the USD could come under renewed selling pressure in the second half of the day.
Later in the day, the US Bureau of Labor Statistics will release its annual revisions of the last 5 years of seasonally adjusted Consumer Price Index data. Although it's difficult to say how the markets would react to revisions to inflation figures, GBP/USD's volatility could ramp up.
GBP/USD Technical Analysis
1.2650 (Fibonacci 23.6% retracement of the latest uptrend) aligns as immediate resistance for GBP/USD. In case the pair manages to flip that level into support, 1.2680 (20-day Simple Moving Average (SMA), 50-day SMA) could act as stiff resistance before 1.2700 (psychological level, 200-period SMA on the 4-hour chart).
On the downside, supports are located at 1.2600 (static level, psychological level), 1.2565 (200-day SMA) and 1.2540 (Fibonacci 38.2% retracement).
- GBP/USD moves sideways slightly above 1.2600 on Friday.
- Improving risk mood could help the pair stretch higher ahead of the weekend.
- GBP/USD needs to stabilize above 1.2650 to attract additional buyers.
GBP/USD declined below 1.2600 on Thursday but managed to stabilize above that level early Friday. In the absence of high-tier data releases, the risk perception could impact the US Dollar's (USD) valuation.
The USD benefited from recovering US Treasury bond yields on Thursday and weighed on GBP/USD. Hawkish remarks from Bank of England (BoE) officials and the modest improvement seen in risk mood, however, helped the pair erase its losses.
Bank of England (BoE) policymaker Catherine Mann explained on Thursday that she voted in favor of a rate hike in the last policy meeting because she is not convinced that the near-term declaration in headline inflation will continue. Early Friday, BoE policymaker Jonathan Haskel acknowledged that inflation pressures might be on the wane but he noted that he would need further evidence of a slowdown before altering his view on the rate outlook.
Following Thursday's indecisive action in Wall Street, US stock index futures trade modestly higher in the European session on Friday. In case there is a bullish opening, the USD could come under renewed selling pressure in the second half of the day.
Later in the day, the US Bureau of Labor Statistics will release its annual revisions of the last 5 years of seasonally adjusted Consumer Price Index data. Although it's difficult to say how the markets would react to revisions to inflation figures, GBP/USD's volatility could ramp up.
GBP/USD Technical Analysis
1.2650 (Fibonacci 23.6% retracement of the latest uptrend) aligns as immediate resistance for GBP/USD. In case the pair manages to flip that level into support, 1.2680 (20-day Simple Moving Average (SMA), 50-day SMA) could act as stiff resistance before 1.2700 (psychological level, 200-period SMA on the 4-hour chart).
On the downside, supports are located at 1.2600 (static level, psychological level), 1.2565 (200-day SMA) and 1.2540 (Fibonacci 38.2% retracement).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.