GBP/USD moves on an upward trajectory amid a bearish sentiment

GBP/USD Price Analysis: Extends gains towards 1.2650 major barrier aligned with 14-day EMA

GBP/USD continues the winning streak for the straight third session, edging higher to near 1.2630 during the Asian session on Thursday. The GBP/USD pair receives upward support as the US Dollar (USD) faces challenges against the Pound Sterling (GBP), which could be attributed to the downbeat US yields amid an improved risk-on sentiment.

The GBP/USD pair could find the immediate barrier at the major level around 1.2650 in conjunction with the 14-day Exponential Moving Average (EMA) at 1.2656, followed by the 50.0% retracement level at 1.2673. A breakthrough above this level could strengthen the upward sentiment and support the pair to approach the resistance zone around the psychological level at 1.2700 aligned with the 61.8% Fibonacci retracement at 1.2709 level. Read more…

GBP/USD drifts higher to 1.2630 on weaker USD, UK higher house prices

The GBP/USD pair gains traction during the early Asian session on Thursday. The uptick in the major pair is bolstered by rising house prices in the UK, which supported bets that the Bank of England (BoE) was not likely to cut interest rates any time soon. The BoE Catherine L. Mann is set to speak on Thursday. At press time, GBP/USD is trading at 1.2630, gaining 0.05% on the day. 

Earlier this week, Fed Chair Jerome Powell stated that March is too early to start rate cuts and investors continue to pencil in the first rate cut in June. Four Fed Governor, Adriana Kugler, Boston Fed President Susan Collins, Minneapolis Fed President Neel Kashkari, and Richmond’s Thomas Barkin were all noncommittal on when the US central bank can start cutting the benchmark lending rate from a two-decade high. However, Minneapolis Fed President Kashkari said that the US central bank needs more time to gain confidence in the inflation outlook before beginning to cut rates. Read more…