Pound Sterling Price News and Forecast: GBP/USD correction could remain short-lived
|GBP/USD Forecast: Pound Sterling correction could remain short-lived
GBP/USD lost 0.5% and touched its lowest level in over a month below 1.2620 on Wednesday. The pair stages a technical correction toward 1.2650 in the European morning on Thursday but the technical outlook doesn't offer any convincing signs pointing to an extended rebound.
The US economic docket will feature the Bureau of Economic Analysis' (BEA) final revision to the annualized Gross Domestic Product (GDP) growth for the first quarter. The US Department of Labor will also release the weekly Initial Jobless Claims data, which is forecast to come in at 236,000 in the week ending June 22. A reading of 240,000, or higher, in the number of fist-time applications for unemployment benefits could remind investors of loosening labor market conditions and cause the US Dollar (USD) to weaken against its rivals. Read more...
GBP/USD Forecast: Pound Sterling turns bearish as strong resistance holds
Following Monday's rebound, GBP/USD tested 1.2700 on Tuesday but failed to clear this level. The pair stays under modest bearish pressure on Wednesday and an extended slide could be seen if 1.2640 support is broken.
In the absence of high-tier data the cautious market stance helped the US Dollar (USD) stay resilient against rivals. Additionally, hawkish comments from Federal Reserve (Fed) officials further supported the USD. Fed Governor Michelle Bowman said on Tuesday that they are not yet at the point where it is appropriate to cut interest rates and added she is willing to raise the target rate at a future meeting if inflation progress stalls or reverses. Read more...
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