GBP/USD nears the YTD high of 1.3398

GBP/USD Price Forecast: Soars towards 1.3400 on soft US data

The Pound Sterling extended its gains against the US Dollar on Tuesday amid a scarce economic docket in the UK. Across the pond, the US Conference Board Consumer Confidence tumbled on labor market views, sending the Greenback sliding and underpinning other currencies higher. The GBP/USD trades at 1.3388 and advances more than 0.30%.

From a technical standpoint, the GBP/USD has cleared the top of an ascending channel, about to challenge the year-to-date (YTD) high of 1.3398, shy of the 1.34 handle. The Relative Strength Index (RSI) favors buyers despite breaking above the 70 marks, seen as overbought territory. However, this could exacerbate a leg-up, before retreating to lower prices. Read more…

Pound Sterling strengthens as BoE seems to follow shallow rate-cut cycle

The Pound Sterling (GBP) gains further against its major peers on Tuesday. The British currency strengthens as investors expect that the Bank of England’s (BoE) policy-easing cycle would be shallower than other central banks from Group of Seven (G-7) nations.

Financial markets expect that the BoE will cut interest rates one more time this year, which will come in any of its two monetary policy meetings remaining this year. High inflation in the United Kingdom’s (UK) service sector seems to be the major reason behind market expectations of BoE’s less-dovish interest rate outlook. Read more…