GBP/USD Price Forecast: Extends decline below 20-day EMA
The GBP/USD pair is down 0.25% to near 1.3500 during the European trading session on Wednesday. The Cable faces selling pressure as the US Dollar (USD) trades firmly due to growing expectations that the Federal Reserve (Fed) will deliver at least one interest rate hike this year.
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.2% higher to near 98.50. According to the CME FedWatch tool, the odds of the Fed delivering at least one interest rate hike this year have increased to 35.6% from 23.5% seen before the United States (US) Consumer Price Index (CPI) data release. Read more…
GBP/USD Price Forecast: Holds modest upside while staying anchored above 100-day EMA support
The GBP/USD pair trades on a positive note around 1.3550 during the early European trading hours on Wednesday. Nonetheless, the potential upside for the major pair might be limited, as UK political turmoil and ongoing tensions in the Middle East could weigh on the British Pound (GBP) against the Greenback.Â
UK Prime Minister Keir Starmer is facing rising pressure to set a date for his departure after elections across much of the country resulted in massive losses for his ruling Labour Party. While Starmer stated he will not resign, the resulting political “noise” and rising UK gilt yields have created localized pressure on the GBP. Read more…
