GBP/USD Forecast: Pound Sterling needs to stabilize above 1.2130 to stretch higher
After dipping to its lowest level since March below 1.2040 in the Asian session on Wednesday, GBP/USD gained traction and climbed above 1.2100. The technical outlook suggests that the pair could extend its rebound if it manages to stabilize above 1.2130. Investors, however, could ignore technical conditions if markets remain risk-averse in the second half of the day.
Wall Street's main indexes suffered large losses on Tuesday as hawkish Federal Reserve bets flooded the markets after the US data showed that job openings rose sharply in August to highlight tightening conditions in the labor market. In turn, the benchmark 10-year US Treasury bond yield climbed to its highest level since 2007 above 4.8% and the US Dollar preserved its strength. Read more...
GBP/USD: Intraday and daily price signals are bullish – Scotiabank
GBP/USD traded to a new cycle low just under 1.2040 in early European trade but gained a cent from the intraday low. Economists at Scotiabank analyze the pair’s outlook. Read more...
Pound Sterling rebounds despite UK Services PMI remain below 50.0 consecutively
The Pound Sterling (GBP) attracts bids amid a correction in the US Dollar and a rebound in the UK's Services PMI data. S&P Global reported UK Services PMI at 49.3, higher than expectations and the former release of 47.2. The economic data failed to capture the 50.0 threshold for the second time in a row but managed to improve the appeal for the Pound Sterling.
Despite a recovery in the Services PMI data, the outlook remains vulnerable amid higher borrowing costs due to tight monetary policy by the Bank of England (BoE) and a weak order book due to subdued economic conditions. British producers have cut back on new orders and labor due to tepid demand. Rising oil prices and supply chain disruptions could push the UK economy further on the backfoot. Read more...
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