Pound Sterling Price News and Forecast: GBP/USD needs to reclaim 1.3000 to recover


GBP/USD Forecast: Pound Sterling needs to reclaim 1.3000 to recover

GBP/USD struggles to stage a recovery and stays below 1.3000 in the European session on Thursday after suffering large losses on Wednesday. The pair remains technically bearish as the market focus shifts to the mid-tier macroeconomic data releases from the US. 

Softer-than-forecast September inflation readings from the UK on Wednesday caused investors to start pricing in multiple Bank of England (BoE) rate cuts this year, triggering a Pound Sterling selloff. Read more...

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GBP/USD drops below 1.3000 on soft inflation report

The British pound has finally showed some movement on Wednesday after a week of limited movement. In the European session, GBP/USD is trading at 1.2992, down 0.62% on the day. The pound fell below the symbolic 1.30 level for the first time since August 20.

The UK inflation report for September was projected to hit a milestone and fall below the BoE’s 2% target, but the reading exceeded expectations. CPI fell to 1.7% y/y, down from 2.2% in August and below the market estimate of 1.9%. This was the lowest level since April 2021 and was driven by lower prices for petrol and airfares. Read more...

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