GBP/USD plummets to two-month low [Video]
GBPUSD plunged to a new almost two-month low of 1.2517 on Monday’s session, falling beneath the short-term trading range and the 200-day simple moving average (SMA). Currently, the market is recovering some losses with the RSI confirming the recent upside move as it is ticking slightly up below 50. On the other hand, the MACD oscillator is losing momentum beneath its trigger and zero lines, while the 20- and the 50-day SMAs are ready for a bearish crossover. Read more...
Pound Sterling retreats as hopes of rate cuts from BoE escalate
The Pound Sterling (GBP) struggles to hold the recovery move in the European session on Tuesday as the near-term outlook for risk-sensitive assets is bearish. The appeal of safe-haven assets is broadly upbeat as investors see the Federal Reserve (Fed) not rushing to cut interest rates. Receding risks of a recession in the United States due to strong labor and retail demand are allowing plenty of time for Fed policymakers to decide on rate cuts.
The GBP/USD fails to accelerate gains even though the UK’s S&P Global/CIPS Services PMI has improved in January. The economic data rose to 54.3, better than expectations of 53.8 and the former reading of 53.4. The agency reported that a robust inflow of fresh orders, strong hiring in the last six months, and deepening prospects of rate cuts by the Bank of England (BoE) led to a strong uptick in the Services PMI. Read more...
GBP/USD Forecast: Sellers could retain control while Pound Sterling stays below 1.2600
GBP/USD lost nearly 0.8% on Monday and touched its lowest level since mid-December below 1.2520. Supported by the improving risk mood, the pair regained its traction early Tuesday and was last seen trading in positive territory slightly above 1.2550.
The broad-based US Dollar (USD) strength weighed on GBP/USD at the beginning of the week. In addition to surging US Treasury bond yields, upbeat ISM Services PMI data for January, which showed that the service sector's business activity expanded at its strongest pace since September, allowed the USD to outperform its rivals. Read more...
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