Pound Sterling Price News and Forecast: The GBP/USD shift – Decoding the head and shoulders signal
|GBP/USD Forecast: Pound Sterling looks fragile to start new week
GBP/USD climbed above 1.2600 in the Asian trading hours on Monday but retreated below that level in the early European session. The pair remains technically bearish but a positive shift in risk sentiment could help Pound Sterling limit its losses.
After touching its weakest level since mid-June below 1.2550 in the early American session on Friday, GBP/USD managed to erase some of its daily losses. Nevertheless, the pair ended the week in negative territory, losing more than 100 pips. Read more...
The GBP/USD shift: Decoding the head and shoulders signal
The GBPUSD pair, often referred to as the "cable" in trading parlance, has been an emblem of currency trading for decades. This evergreen trading pair has recently flashed some intriguing signals, which could pave the way for a fresh narrative in its trading direction.
Over the last week, this pair has sketched out a classic head and shoulders formation, outlined conspicuously in blue. For those less versed in technical jargon, the head and shoulders pattern is a reliable indicator that a currency pair, or any tradable asset for that matter, may be about to take a bearish turn, effectively terminating its prior uptrend. Read more...
Pound Sterling remains delicate amid deepening recession risks
The Pound Sterling (GBP) recovered after printing a fresh 14-week low, but the broader bias remains bearish as the British economy is exposed to a possible recession due to an aggressive rate-tightening cycle by the Bank of England (BoE). The GBP/USD pair communicates fears about rising interest rates as the tight labor market is losing its appeal, and firms have reported a decline in production due to a dismal demand outlook.
Investors are worried that the UK economy could shift into a recession as the housing sector, economic activities and the labor market are struggling to carry the burden of a restrictive monetary policy. Read more...
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