GBP/USD loses ground as traders adopt caution

GBP/USD falls to near 1.3150 ahead of US PCE data

GBP/USD loses ground for the third successive session, trading around 1.3160 during the Asian hours on Friday. This downside could be attributed to the improved US Dollar (USD) following stronger-than-expected economic data released on Thursday. Investors await July’s US Personal Consumption Expenditure (PCE) Price Index scheduled to be released later in the North American Session.

The US Gross Domestic Product Annualized grew at 3.0% in the second quarter, exceeding both the expected and previous growth rate of 2.8%. Additionally, Initial Jobless Claims showed that the number of people filing for unemployment benefits fell to 231,000 for the week ending August 23, down from the previous 233,000 and slightly below the expected 232,000. Read more…

GBP/USD Price Forecast: Tumbles below 1.3200 as US Dollar recovers

The GBP/USD extended its losses to two straight days and cleared the 1.3200 figure on the downside, as bears woke up after August’s 400-pip rally, crushed their expectations for lower prices. Despite the lack of UK economic data, the docket remains busy across the pond, with goodish data bolstering the Greenback. Therefore, the pair trades at 1.3151, down 0.30%.

The GBP/USD daily chart hints that in the short-term, the pair could aim and test the latest cycle high witnessed on July 17, at 1.3043. Momentum has shifted in sellers’ favor as the Relative Strength Index (RSI) peaked at overbought territory. However, it has finally retraced below the 70 level, spurring the major’s two-day pullback to current exchange rates. Read more…