GBP/USD Forecast: Pound Sterling looks fragile to start new week
GBP/USD climbed above 1.2600 in the Asian trading hours on Monday but retreated below that level in the early European session. The pair remains technically bearish but a positive shift in risk sentiment could help Pound Sterling limit its losses.
After touching its weakest level since mid-June below 1.2550 in the early American session on Friday, GBP/USD managed to erase some of its daily losses. Nevertheless, the pair ended the week in negative territory, losing more than 100 pips. Read more...
The GBP/USD shift: Decoding the head and shoulders signal
The GBPUSD pair, often referred to as the "cable" in trading parlance, has been an emblem of currency trading for decades. This evergreen trading pair has recently flashed some intriguing signals, which could pave the way for a fresh narrative in its trading direction.
Over the last week, this pair has sketched out a classic head and shoulders formation, outlined conspicuously in blue. For those less versed in technical jargon, the head and shoulders pattern is a reliable indicator that a currency pair, or any tradable asset for that matter, may be about to take a bearish turn, effectively terminating its prior uptrend. Read more...
Pound Sterling remains delicate amid deepening recession risks
The Pound Sterling (GBP) recovered after printing a fresh 14-week low, but the broader bias remains bearish as the British economy is exposed to a possible recession due to an aggressive rate-tightening cycle by the Bank of England (BoE). The GBP/USD pair communicates fears about rising interest rates as the tight labor market is losing its appeal, and firms have reported a decline in production due to a dismal demand outlook.
Investors are worried that the UK economy could shift into a recession as the housing sector, economic activities and the labor market are struggling to carry the burden of a restrictive monetary policy. Read more...
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EUR/USD stabilizes near 1.0550, looks to post weekly gains
EUR/USD continues to fluctuate in a tight channel at around 1.0550 in the American session on Friday as trading action remains subdued with US financial markets heading into the weekend early. The pair looks to end the week in positive territory.
GBP/USD loses traction, retreats below 1.2700
After climbing to its highest level in over two weeks at 1.2750, GBP/USD reverses direction and declines to the 1.2700 area on Friday. In the absence of fundamental drivers, investors refrain from taking large positions. Nevertheless, the pair looks to snap an eight-week losing streak.
Gold pulls away from daily highs, holds near $2,650
Gold retreats from the daily high it set above $2,660 but manages to stay afloat in positive territory at around $2,650, with the benchmark 10-year US Treasury bond yield losing more than 1% on the day. Despite Friday's rebound, XAU/USD is set to register losses for the week.
Bitcoin attempts for the $100K mark
Bitcoin (BTC) price extends its recovery and nears the $100K mark on Friday after facing a healthy correction this week. Ethereum (ETH) and Ripple (XRP) closed above their key resistance levels, indicating a rally in the upcoming days.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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