GBP/USD Forecast: Pound Sterling sets trading range before next breakout
GBP/USD holds its ground and trades slightly above 1.2600 in the European session on Thursday after posting marginal losses on Wednesday. The pair's technical outlook points to a lack of seller interest in the near term.
Early Wednesday, GBP/USD edged higher with the immediate reaction to the January inflation data from the UK. Later in the day, the US Dollar (USD) benefited from the cautious market mood and caused the pair to turn south. Meanwhile, the minutes of the Federal Reserve's (Fed) January policy meeting showed that some policymakers saw potential changes in trade and immigration policy possibly hindering the disinflation process. Read more...
GBP/USD: To trade in a sideways range of 1.2550/1.2615 – UOB Group
Momentum indicators are turning flat; Pound Sterling (GBP) is expected to trade in a sideways range of 1.2550/1.2615 vs US Dollar (USD). In the longer run, upward momentum is beginning to slow; a breach of 1.2525 would indicate that GBP is not strengthening further, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
4-HOUR VIEW: "We pointed out yesterday that 'although upward momentum has not increased much, there is still a chance for GBP to edge higher today.' However, we were of the view that 'a clear break above 1.2655 still seems unlikely.' GBP subsequently rose to 1.2641, pulling back to close at 1.2586 (-0.22%). Momentum indicators are turning flat, and today, we expect GBP to trade in a sideways range of 1.2550/1.2615." Read more...
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