GBP/USD Forecast: Sellers to retain control while Pound Sterling remains below 1.2100
GBP/USD lost more than 50 pips on Wednesday and declined below 1.2100 early Thursday. The pair remains technically bearish in the near term and the souring market mood suggests that a steady recovery could be hard to come by.
Escalating geopolitical tensions caused investors to seek refuge late Wednesday, helping the US Dollar (USD) continue to outperform its risk-sensitive rivals. News of Israeli military preparing for a ground incursion into the Gaza region revived fears over a deepening crisis in the Middle East. Read more…
GBP/USD outlook: Risk aversion continues to pressure
GBPUSD fell to the lowest in three weeks in early Thursday, pressured by renewed risk aversion on growing concerns that interest rates would stay high for longer period.
Bear-leg off 1.2288 (Oct 24 lower top) extends into third straight day, with break of pivotal Fibo support at 1.2108 (76.4% retracement of 1.2037/1.2337 recovery), 1.2090 (Oct 19 trough) and 1.2074 (Fibo 38.2% of larger 1.0348/1.3141 uptrend expected to generate fresh bearish signal for attack at 1.2037/29 (Oct 4 low/weekly Ichimoku cloud top) and psychological 1.20 support in extension. Read more…
Pound Sterling weakens on risk-off mood amid Middle East conflicts
The Pound Sterling (GBP) continues to face intense selling pressure amid dismal market sentiment due to escalating tensions in the Middle East combines with a poor economic outlook for the United Kingdom. The GBP/USD pair continues its losing streak for the third trading session in a row as labor market conditions and business activity in the UK region are deteriorating due to a decline in new business orders.
A string of weak economic indicators from the UK economy have dented expectations of more interest rate hikes from the Bank of England (BoE). The central bank is expected to keep interest rates unchanged at 5.25% to avoid further economic casualties. Read more…
