GBP/USD – Sellers take action as 1.2560 support fails

Pound Sterling dives on deepening recession fears

The Pound Sterling (GBP) faces immense selling pressure and will likely retest a 10-week low due to the active risk-aversion theme. The GBP/USD pair is reeling from the Bank of England’s (BoE) aggressive policy of raising interest rates, which is threatening the economic outlook. Investors believe that the global economy will shift into a recession if central banks continue to tighten monetary policy.

The UK economy is expected to remain vulnerable as the BoE could be the laggard in pausing the policy tightening spell. Britain’s Consumer Price Index (CPI) is the highest among G7 economies, which warrants more rate hikes ahead. Read more…

GBP/USD Forecast: Sellers take action as 1.2560 support fails

GBP/USD came under renewed bearish pressure and touched its lowest level since June 13 below 1.2530 in the European morning on Tuesday. The pair’s near-term technical outlook suggests that sellers could continue to control the action as long as 1.2560 resistance stays intact.

Following Monday’s choppy action due to thin trading conditions, safe-haven flows started to dominate the financial markets early Tuesday. Major Asian equity indexes suffered large losses as investors reacted to weaker-than-expected Services PMI data from China. Read more…

GBP/USD flirts with 1.2630 resistance as UK spending details linger, focus on US Factory Orders

GBP/USD justifies the Cable traders’ indecision amid mixed catalysts while making rounds to 1.2630 heading into Tuesday’s London open. Apart from the unclear signals, the cautious mood ahead of the key US and UK data also prods the Pound Sterling moves of late.

Earlier in the day, Reuters came out with the Barclay Card data while saying, “Annual growth in the UK consumer spending on credit and debit cards slowed to 2.8% in August from 4.0% in July.” However, the UK’s BRC Like-for-Like Retail Sales grew 4.3% YoY for August versus 1.8% prior. Read more…