Pound Sterling Price News and Forecast: GBP/USD recovers early lost ground
|GBP/USD Forecast: Pound stays vulnerable despite sellers' hesitancy
GBP/USD has reversed its direction and declined toward 1.3500 after rising to a fresh multi-week high above 1.3600 on Thursday. Although the pair seems to have shaken off the bearish pressure in the early European session on Friday, it stays vulnerable amid souring market mood and renewed dollar strength.
On Thursday, the US Bureau of Labor Statistics announced that the Consumer Price Index (CPI) jumped to its highest level since 1982 at 7.5% on a yearly basis in January. The US Dollar Index (DXY), which tracks the greenback's performance against a basket of six major currencies, advanced to its highest level in a week with the initial reaction and forced GBP/USD to edge lower. Read more...
GBP/USD recovers early lost ground, flat-lined around mid-1.3500s amid modest USD pullback
The GBP/USD pair recovered its early lost ground and was last seen trading in the neutral territory, around mid-1.3500s.
The pair witnessed some selling during the first half of the trading on Friday and dropped to the lower end of its weekly trading range amid a strong follow-through US dollar buying. Expectations that the Fed will tighten its monetary policy at a faster pace to combat high inflation continued acting as a tailwind for the greenback and exerted pressure on the GBP/USD pair. Read more...
GBP/USD to push higher towards 1.36 on sustained move above 1.3560
GBP/USD has managed to regain its traction before testing 1.3500. But as FXStreet’s Eren Sengezer notes, the pound stays vulnerable and needs to break above 1.3560 to alleviate downside pressure.
“In order to push higher toward 1.3600 (psychological level) and 1.3620 (static level), the pair needs to rise above 1.3560 (Fibonacci 23.6% retracement level of the latest uptrend) and start using that level as support.” Read more...
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