GBP holds above key level as focus shifts to US data

GBP/USD outlook: Remains constructive ahead of US data

Cable is probing above 1.2800 mark in early Thursday, adding to initial signals that shallow correction from new 8-month high (1.2893) might be over. Two-day pullback was contained by rising 10DMA, with strong downside rejection on Wednesday, pointing to solid bids and signaling that larger bulls remain firmly in play.

Technical picture on daily chart is bullish (positive momentum is strong and Tenkan / Kijun-sen in bullish setup and diverging), with fresh recovery seeing a daily close above 1.2800 (Fibo 38.2% of 1.2893/1.2745 correction) as minimum requirement to keep near-term action biased higher. Read more…

GBP/USD Forecast: Pound Sterling holds above key level as focus shifts to US data

Following a two-day decline, GBP/USD went into a consolidation phase and closed the day virtually unchanged on Wednesday. The pair holds slightly above 1.2800 in the European session on Thursday ahead of key macroeconomic data releases from the US.

In the absence of fundamental drivers, GBP/USD failed to gather directional momentum midweek. While rising US Treasury bond yields helped the US Dollar (USD) stay resilient against its rivals, the neutral risk mood helped the pair limit its losses. Read more…

Pound Sterling trades sideways as investors seek fresh guidance over BoE interest rates

The Pound Sterling (GBP) is stuck in a tight range around 1.2800 in Thursday’s London session as investors seek fresh guidance on the Bank of England’s (BoE) next moves in terms of interest rates. The GBP/USD pair trades sideways as investors look for clues about when the BoE and the Federal Reserve (Fed) will start reducing interest rates.

The near-term appeal of the Cable is uncertain as the stubborn United States inflation data for February has reinforced fears that the Fed could delay plans to reduce interest rates. Currently, markets broadly expect that the Fed will make this move in June.  Read more…