GBP/USD Forecast: Pound Sterling needs to confirm 1.2550 as support to attract bulls
GBP/USD is having a difficult time gaining traction after rising nearly 0.3% on a daily basis on Monday. Ahead of the US producer inflation data and Federal Reserve (Fed) Chairman Jerome Powell's speech, the pair trades in a narrow band at around 1.2550.
The data published by the UK's Office for National Statistics showed early Tuesday that the ILO Unemployment Rate edged higher to 4.3% in the three months to March from 4.2%. This reading came in line with analysts' estimate. Annual wage inflation, as measured by the change in the Average Earnings Including Bonus, held steady at 5.7% and beat the market expectation of 5.3%. Nevertheless, the mixed data failed to provide a boost to Pound Sterling. Read more...
GBP/USD Forecast: Pound Sterling is yet to pull away from 200-day SMA
After fluctuating wildly in the second half of the previous week, GBP/USD seems to have stabilized above 1.2500 at the beginning of the new week. The near-term technical outlook fails to offer directional clues, while the pair struggles to pull away from the 200-day Simple Moving Average (SMA), currently located at 1.2540.
The dovish tone seen in the Bank of England's (BoE) policy statement following the decision to maintain the bank rate at 5.25% on Thursday made it difficult for Pound Sterling to find demand. The US Dollar (USD) selloff that was triggered by disappointing US data later in the day, however, helped GBP/USD find support and allowed the pair to rise above 1.2500. Read more...
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