Pound Sterling Price News and Forecast: GBP/USD gains traction near familiar support area


GBP/USD gains traction near familiar support area

GBP/USD returned to gains after a six-day decline squeezed it to a six-month low of 1.2595. The pair rebounded near an important trendline from October 2023, and indicators like the RSI and stochastic oscillator suggest the price is likely set for an upward move from oversold territory.

Yet, buyers may not make additional moves until the price clearly crawls back above August’s base of 1.2663-1.2685. The 1.2730 bar, which overlaps with the 61.8% Fibonacci retracement of the April-September upleg, could be another hurdle before the 200-day simple moving average (SMA) and the 50% Fibonacci mark of 1.2865 come into view. If the tentative resistance line gives way at 1.2915, the bulls could accelerate toward the critical 1.3000-1.3040 constraining zone with scope to change the trend back to positive. Read more...

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GBP/USD Forecast: Pound Sterling struggles to build on Monday gains ahead of BoE hearings

GBP/USD gathered bullish momentum and gained nearly 0.5% on Monday, snapping a six-day losing streak in the process. The pair, however, lost its traction after approaching 1.2700 and started to edge lower toward 1.2650 in the European morning on Tuesday.

The selling pressure surrounding the US Dollar (USD) helped GBP/USD stretch higher in the second half of the day on Monday. In the absence of high-tier macroeconomic data releases, the pullback seen in the US Treasury bond yields made it difficult for the USD to build on the previous week's gains. Read more...

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