Pound Sterling Price News and Forecast GBP/USD: Weekly M-formation playing out

FXStreet Team FXStreet

UK Inflation Preview: Another hit to British households, and to the pound?

GBP/USD has stalled its recovery momentum from the 2022 lows, as the driving theme of central bank divergence comes back to the fore. The Bank of England (BOE) delivered a cautious rate hike at its March policy meeting while Jerome Powell and Co. remain on course for aggressive tightening. UK inflation is foreseen at 5.9% YoY in February, refreshing a 30-year high. BOE expects inflation to be “several percentage points” higher than its 7.25% previous forecast. Soaring inflation to accentuate BOE’s dilemma, posing downside risks to the GBP. Read more...

GBP/USD Price Analysis: Weekly M-formation playing out

The M-formation is a compelling pattern that is playing out with the price reverting towards the neckline of the pattern near 1.3350. This comes in towards a 61.8% golden ratio and 1.34 the figure. Should the area hold, the price would be expected to continue on its southerly trajectory with 1.28 the figure in focus. Hawkish comments from Fed Chair Jerome Powell yesterday have injected another wave of re-pricing into US rates markets. However, the pound has continued higher in a technical move towards a weekly resistance level as per the following chart. Read more...

GBP/USD Forecast: Pound bulls to take action above 1.3200

GBP/USD has turned north following a decline toward 1.3100 earlier in the day. The positive shift witnessed in market mood seems to be helping the British pound hold its ground against the greenback in the early European session. The pair is closing in on key 1.3200 resistance and additional gains could be witnessed if sellers fail to defend that level. Ukrainian President Volodymyr Zelenskyy said on Tuesday that they were ready to discuss commitment not to join NATO and added that they could also discuss the status of Crimea and Donbass after the ceasefire. Although it's too early to say whether or not these remarks could be taken as convincing signs toward a diplomatic solution, risk-sensitive assets are gathering interest. Read more...

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EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.