Pound Sterling Price News and Forecast: GBP/USD faces key resistance at 1.2825

FXStreet Team FXStreet

Pound Sterling recovery sustains as central bank to keep rates elevated for longer

The Pound Sterling (GBP) strengthens after hopes of more interest rate hikes from the Bank of England (BoE) are renewed. The GBP/USD pair discovers buying interest as the United Kingdom inflation is expected to remain well above 2% for the next four years. As the central bank is failing to achieve price stability sooner, further policy tightening cannot be ruled out.

This week, the UK manufacturing sector for June will be under scrutiny. The performance of British factories and preliminary GDP for the April-June quarter will be watched closely as the policy environment is highly restrictive and observers wonder if the economy will manage to avoid a recession. Meanwhile, claims from BoE Pill and the National Institute of Economic & Social Research (NIESR) indicate that UK PM Rishi Sunak will fulfill his promise of easing inflation to 5% by the end of 2023. Read more...

GBP/USD Forecast: Pound Sterling faces key resistance at 1.2825

After dropping below 1.2700 during the European trading hours on Tuesday, GBP/USD managed to erase a large portion of its daily losses before closing the day slightly above 1.2740. Supported by the positive shift seen in risk mood early Wednesday, GBP/USD extended its recovery beyond 1.2750. Although the technical outlook shows that sellers struggle to dominate action, the pair could find it difficult to rise steadily unless it clears the strong resistance that seems to have formed at 1.2825.

The bearish opening in Wall Street allowed the US Dollar (USD) to continue to find demand as a safe haven on Tuesday. After Philadelphia Federal Reserve Bank President Patrick Harker noted that they could probably start lowering the policy rate next year, however, the 10-year US Treasury bond yield declined sharply toward 4% and limited USD's gains. Read more...

Author

FXStreet Team

FXStreet

EUR/USD remains bid near 1.1650 post-US ADP

Finally some respite for the risk complex see EUR/USD partially recover from the recent steep sell-off, this time hovering around the 1.1650 zone amid decent gains in a context of renewed selling pressure on the US Dollar. However, the duration and extension of this bounce should be put to the test amid the unabated tensions in the Middle East.

GBP/USD meets resistance around 1.3400

In line with its risk-linked peers, GBP/USD stages a modest comeback on Wednesday, although meeting some resistance around the 1.3400 neighbourhood. Cable’s humble recovery comes on the back of the fresh downward bias in the Greenback amid a marginal improvement in the global sentiment and steady geopolitical effervescence.

Gold flirts with $5,200 amid safe haven demand

Gold partially fades Tuesday’s sharp pullback, regaining the $5,200 mark per troy ounce on the back of the resurgence of investors’ demand for the safe-haven space. The precious metal remains well propped up by the deterioration of the geopolitical scenario in the Middle East, while the softer tone in the US Dollar collaborates with the uptick.