GBP/USD needs to stabilize above 1.2200 to keep buyers interested

Pound Sterling recovery falters as UK factory activities contracted 14th time in a row

The Pound Sterling (GBP) surrendered gains as the S&P Global reported a contraction in the United Kingdom’s Manufacturing PMI for the 14th time in a row and the US Dollar rebounded ahead of Federal Reserve (Fed) Governor Jerome Powell’s speech.. The GBP/USD pair is struggling to improve the United Kingdom’s learning curve in handling the repercussions of higher interest rates by the Bank of England (BoE). The BoE has paused its policy-tightening spell after raising them to 5.25% to safeguard the economy from further slowdown.

A sheer volatility is anticipated in the Pound Sterling ahead as UK Finance Minister Jeremy Hunt is expected to raise the minimum wage and ignore tax cuts at the annual Conservative Party conference. Read more…

GBP/USD Forecast: Pound Sterling needs to stabilize above 1.2200 to keep buyers interested

GBP/USD rose to 1.2220 in the early European morning before losing traction and turning negative on the day below 1.2200. Once the pair stabilizes above 1.2200 and confirms that level as support, technical buyers could show interest.

GBP/USD closed the previous week in negative territory as the US Dollar (USD) capitalized on rising US Treasury bond yields and the risk-averse market atmosphere. As US Congress passed a stopgap funding bill to avoid a government shutdown over the weekend, investors breathed a sigh of relief. Highlighting the improving market mood, US stock index futures gained traction at the weekly opening and were last seen gaining between 0.5% and 0.8%. Read more…

GBP/USD: A retest of the 1.20/1.21 area looks likely – Scotiabank

GBP/USD slips back after late week rebound stalls. Economists at Scotiabank analyze the pair’s outlook.  Read more…