Pound Sterling Price News and Forecast: GBP/USD oscillates in a range above its lowest level since June 13
|GBP/USD consolidates near multi-month low, holds above mid-1.2500s on subdued USD demand
The GBP/USD pair struggles to capitalize on the overnight modest bounce from the 1.2530-1.2525 region, or its lowest level since June 13 and oscillates in a narrow trading band through the Asian session on Wednesday. Spot prices currently hover around the 1.2570 region, up less than 0.10% for the day, and remain at the mercy of the US Dollar (USD) price dynamics.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, consolidate its recent move up to a nearly six-month top, which, in turn, is seen as a key factor acting as a tailwind for the GBP/USD pair. Apart from this, expectations that the Bank of England (BoE) will continue with its policy tightening cycle to combat high inflation lends some support to the British Pound (GBP). In fact, money market futures indicate over 85% chance that the BoE will hike interest rates by 25 bps, for the fifteenth time in September. Read more...
GBP/USD Price Analysis: Cable bears need validation from 1.2530 and US ISM Services PMI
GBP/USD portrays a corrective bounce off the short-term key support line while picking up bids to 1.2570 during the early hours of Wednesday’s trading.
The Cable pair dropped to the lowest level since June 13 amid broad US Dollar strength before a 2.5-month-long falling trend line joined downbeat oscillators to trigger the quote’s bounce. However, the cautious mood ahead of the US ISM Services PMI for August, expected 52.6 versus 52.7 prior, as well as the final readings of the US S&P Global PMIs for the said month, prod the Pound Sterling traders of late. Read more...
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.