Pound Sterling Price News and Forecast: GBP/USD gains momentum around 1.2688, backed by the weaker USD
|GBP/USD Price Analysis: The key hurdle is seen at the 1.2790–1.2800 zone
The GBP/USD pair holds positive ground during the early European session on Monday. The uptick in the pair is bolstered by the hawkish stance of the Bank of England (BoE) to remain restrictive for an extended period to bring inflation down to its target. The major pair currently trades near 1.2688, up 0.12% on the day
According to the four-hour chart, the bullish outlook of GBP/USD remains intact as the major pair holds above the 50- and 100-hour Exponential Moving Averages (EMAs). The upward momentum is reinforced by the Relative Strength Index (RSI), which stands in bullish territory above 50. Read more...
GBP/USD steadily climbs back closer to 1.2700 mark amid subdued USD price action
The GBP/USD pair attracts some dip-buying around the 1.2655 area during the Asian session on Monday and for now, seems to have stalled its retracement slide from the vicinity of the 1.2800 mark, or a near four-month peak touched last week. Spot prices climb to a fresh daily high, around the 1.2685 region in the last hour and draw support from a combination of factors.
The British Pound (GBP) is underpinned by the Bank of England's (BoE) hawkish stance, saying that monetary policy is likely to need to be restrictive for an extended period of time as key indicators of UK inflation remain elevated. Adding to this, the flash UK PMIs released on Friday indicated growth picking up some momentum at the end of the year, which should allow the economy to dodge recession during the fourth quarter as a whole. This, along with subdued US Dollar (USD) price action, acts as a tailwind for the GBP/USD pair. Read more...
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