GBP/USD could test 1.2300 next [Video]

GBP/USD retains upswing but needs more backing [Video]

GBPUSD has been stagnant around the 1.2235 barrier for two days, hindered by the 20-day simple moving average (SMA) and the resistance line from July. Encouragingly, the technical indicators keep pointing upwards, with the RSI further distancing itself from its 30 oversold region and the MACD recovering above its red signal line. On the other hand, the stochastic oscillator is crawling into the overbought territory, signaling the bears might be around the corner. Read more…

GBP/USD Forecast: Pound Sterling could test 1.2300 next

GBP/USD gathered bullish momentum and rose to its highest level in over two weeks above 1.2250 after spending the Asian session in a tight channel near 1.2200 on Tuesday.

The positive shift seen in risk sentiment makes it difficult for the US Dollar (USD) to find demand early Tuesday and helps GBP/USD stretch higher. At the time of press, the UK’s FTSE 100 Index was up 1.5% on the day and US stock index futures were rising about 0.2%. A positive opening in Wall Street followed by a risk rally could allow the pair to extend its recovery in the second half of the day. Read more…

Pound Sterling refreshes two-week high as market sentiment improves

The Pound Sterling (GBP) stabilizes after recovering from a six-month low as market sentiment improves and Bank of England (BoE) policymaker Katherine Mann calls for a more aggressive approach to bring down inflation to 2%. Last week, BoE Governor Andrew Bailey said he expected inflation to decline to or below 5% by year-end, but added that he doesn’t promise the achievement of price stability in a timely manner.

The UK manufacturing and construction sectors are bearing the brunt of higher interest rates. UK’s factory activity has been contracting, with the PMI gauge coming in below the 50.0 threshold for a long period. Read more …