GBP extends recovery on improved sentiment, S&P PMI in focus

GBP/USD Forecast: Pound Sterling could encounter strong resistance at 1.2830

GBP/USD continued to edge higher and touched its highest level in nearly two weeks at 1.2800 early Tuesday after registering modest gains on Monday. The technical outlook suggests that the pair has started to gather bullish momentum but Pound Sterling buyers could wait for the pair to clear the 1.2830 hurdle before adding to their long positions.

Following a bearish opening to the week, the US Dollar (USD) gathered strength as the benchmark 10-year US Treasury bond yield climbed to its highest level since November 2007 above 4.35%. The positive shift seen in risk sentiment, as reflected by the strong gains in US tech stocks, later in the American session limited the USD’s upside. Read more…

Pound Sterling extends recovery on improved sentiment, S&P PMI in focus

The Pound Sterling (GBP) prints a fresh three-day high, capitalizing on improving market sentiment and expectations of more interest rate hikes from the Bank of England (BoE) to ensure price stability. The GBP/USD pair picks strength as investors hope that the current tightening cycle of the BoE will surpass the tightening peak by the Federal Reserve (Fed).

Higher borrowing cost by the BoE widens its scope of consequences to the United Kingdom’s property sector. Homebuyers have been witnessing an affordability squeeze due to higher mortgage rates as strong wage growth struggles to offset higher installment obligations. The Pound Sterling is expected to remain in action as UK PM Rishi Sunak is planning a big cabinet reshuffle ahead of general elections in 2024. Read more…