GBP/USD Forecast: Powell to the rescue? Pound technicals and fundamentals point lower
When a currency cannot hold up when all others are in suspense – its weakness is exposed. GBP/USD has been on the back foot, struggling to hold onto 1.37 while investors are holding their breaths toward a critical event. Federal Reserve Chair Jerome Powell is set to provide signals about tapering the bank's bond-buying scheme in the virtual Jackson Hole speech.
There are several reasons for sterling's suffering. UK COVID-19 cases have extended their increase, topping 38,000 in Thursday's report. Reopening the economy has consequences. While the government is unlikely to undo "Freedom Day," consumers may remain shy of going out and about, thus slowing the economic recovery. Read more...
GBP/USD holds above 1.3700 mark, lacks follow-through ahead of Powell
The GBP/USD pair held on to its modest intraday gains, around the 1.3715-20 region through the mid-European session, albeit lacked any follow-through buying.
The pair attracted some dip-buying on the last day of the week and rallied nearly 40 pips from four-day lows, around the 1.3680 region amid a modest US dollar weakness. The underlying bullish sentiment undermined demand for the safe-haven greenback and assisted the GBP/USD pair to recover a part of the overnight retracement slide from over one-week lows. Read more...
GBP/USD to turn lower again towards key support zone at 1.3571/67 – Credit Suisse
The rebound in GBP/USD has been capped at a cluster of resistances including its 200-day average (DMA) at 1.3802. The subsequent completion of a bearish “reversal day” is expected to clear the way for a retest of key support at 1.3571/67, the Credit Suisse analyst team reports.
“We think the recent strength has been corrective only. Indeed, below support at 1.3693, GBP/USD has seen a minor top complete and we look for a fall back to the recent low and potential trend support at 1.3608/01.” Read more...
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