GBP/USD Forecast: Pound Sterling remains fragile ahead of US data
GBP/USD lost 0.5% on Thursday and continued to push lower in the early European session on Friday. After touching its lowest level since mid-May at 1.2630, GBP/USD edged higher to the 1.2650 area but the technical outlook doesn't highlight a buildup of recovery momentum.
The Bank of England (BoE) announced on Thursday that it left the monetary policy settings unchanged. "June decision was finely balanced as higher-than-expected services inflation reflected factors that would not push up medium-term inflation," the BoE said in its press release. The BoE's optimistic tone on inflation outlook caused Pound Sterling to weaken against its major rivals. Read more...
GBP/USD Elliott Wave technical analysis [Video]
The GBPUSD Elliott Wave analysis on the daily chart examines the ongoing market trend through the lens of Elliott Wave theory, specifically focusing on a corrective phase. This analysis centers on the orange wave C within the broader structure of navy blue wave 2. The primary objective is to track and predict the market's movements during this corrective period. Read more...
GBP/USD outlook: Cable dips after BoE's dovish hold
Cable fell below 1.2700 marks and hit the session low on Thursday, after the BoE kept rates unchanged but markets saw it as a dovish hold which deflated pound.
The fact that inflation returned to 2% target in May did not play the key role in BoE today’s decision, as the policymakers remain cautious and look for more evidence, before start easing the borrowing cost from its multi-year high. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily recovery gains above 1.0700 after US data
EUR/USD stays in positive territory above 1.0700 in the second half of the day on Thursday. Following the mixed macroeconomic data releases from the US, the US Dollar (USD) struggles to gather strength and helps the pair hold its ground.
USD/JPY retreats below 106.50 on renewed USD weakness
USD/JPY extends its correction from multi-decade high it touched earlier in the day and trades below 160.50. Verbal intervention from Japanese officials seems to be helping the JPY shake off the selling pressure, while the mixed US data hurt the USD.
Gold back to its comfort zone around $2,330
Gold bounces off the psychologically important $2,300 level and trades above $2,320 on Thursday. The benchmark 10-year US Treasury bond yield stays in negative territory following latest US data, allowing XAU/USD to extend its rebound.
VanEck files for Solana ETF in the US
VanEck filed to list a Solana spot exchange-traded fund in the US after the approval in January of Bitcoin ETFs. The asset manager says it considers Solana "a commodity, like Bitcoin or Ether."
Indices fall back as inflation worries return
Higher inflation in Australia has not helped matters, and raises the uncomfortable prospect that major bugbear of the past two years is set to make an unwelcome return, leading to rate hikes once again.