GBP/USD Forecast: 1.2500 proves to be a stiff resistance
Following the downward correction seen in the second half of the previous week, GBP/USD opened on a bullish note and climbed toward 1.2500 before losing its traction. The pair's technical outlook suggests that the bullish bias remains intact despite the recent pullback.
Although the US Dollar (USD) stood under heavy selling pressure last week, soft inflation readings from the UK made it difficult for GBP/USD to extend its uptrend. Early Monday, the pair edged higher on improving risk sentiment but struggled to surpass 1.2500. At the time of press, US stock index futures were trading modestly higher on the day. Read more...
GBP/USD climbs back closer to over two-month top, bulls flirt with 100-day SMA near 1.2500
The GBP/USD pair attracts some dip-buying following an early dip to the 1.2440 area on Monday and builds on its steady ascent through the early part of the European session. Spot prices climb back closer to the 1.2500 psychological mark, with bulls now awaiting a sustained move and acceptance above the 100-day Simple Moving Average (SMA) before placing fresh bets.
The US Dollar (USD) selling bias remains unabated in the wake of dovish Federal Reserve (Fed) expectations, which, in turn, is seen pushing the GBP/USD pair higher for the second successive day. Investors now seem convinced that the US central bank is done with its policy tightening campaign and the bets were reaffirmed by the softer US CPI report released last week. Moreover, the markets are now pricing in the possibility that the Fed will start cutting rates as soon as March 2024. Read more...
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