GBP/USD Price Analysis: Remains under pressure below the mid-1.2000s, oversold RSI condition eyed
The GBP/USD pair extends its downside and trades in negative territory for the fifth consecutive week during the early European trading session on Tuesday. The sell-off of the pair is supported by the firmer US Dollar (USD) and the hawkish stance of the Federal Reserve (Fed). GBP/USD currently trades around 1.2066, losing 0.16% on the day.
Technically, GBP/USD holds below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope on the one-hour chart, which means further downside looks favorable. Read more…
GBP/USD seems vulnerable below 1.2100, multi-month low on sustained USD buying
The GBP/USD pair is seen oscillating in a narrow trading band below the 1.2100 mark and consolidating its recent losses to the lowest level since March 16 touched during the Asian session this Tuesday. Extremely oversold conditions on the daily chart hold back bearish traders from placing fresh bets, though the fundamental backdrop suggests that the path of least resistance for spot prices is to the downside.
The British Pound (GBP) continues with its relative underperformance in the wake of the Bank of England’s (BoE) surprise move to pause its rat-hiking cycle in September. This was the first time since December 2021 that the BoE did not raise interest rates. Adding to this, the UK central bank also lowered its forecast for economic growth in the July-September period to just 0.1% from the previous projection of 0.4% and provided little hints of its intention to raise rates any further. This, along with the underlying strong bullish sentiment surrounding the US Dollar (USD), acts as a headwind for the GBP/USD pair. Read more…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-loses-momentum-and-holds-below-the-mid-12000s-on-tuesday-202310030512