Pound Sterling stays below key resistance levels

Pound Sterling capitalizes on improved market mood, decline in US Dollar

The Pound Sterling (GBP) prints a fresh two-week high against the US Dollar (USD) near 1.2550 in Monday’s London session. The GBP/USD pair advances due to cheerful market sentiment and a decline in the US Dollar. The Cable strengthens as mixed guidance from Bank of England (BoE) policymakers over the inflation outlook increases uncertainty about when the BoE will start its interest rate cuts cycle.

BoE Deputy Governor Dave Ramsden said in mid-April that the risks of inflation remaining elevated have receded. Ramsden predicted headline inflation would return to the 2% target in May and said it would likely remain at this level for the next two years. Read more…

GBP/USD Forecast: Pound Sterling stays below key resistance levels

After reaching its highest level since April 12 near 1.2550 at the beginning of the week, GBP/USD lost its traction and erased a portion of its daily gains. Nevertheless, the pair manages to hold above 1.2500, supported by the selling pressure surrounding the US Dollar (USD). The near-term technical outlook suggests that the bullish bias remains intact but buyers could remain hesitant unless the pair clears 1.2560.

The suspected in the foreign exchange market by Japan triggered a selloff in the USD during the Asian trading hours on Monday. The USD Index, which gauges the USD’s valuation against a basket of six major currencies, was last seen losing 0.3% on the day. However, GBP/JPY is also down nearly 1.5% on the day, suggesting the Japanese Yen (JPY) captures capital outflows out of Pound Sterling as well. In turn, GBP/USD’s upside remains capped. Read more…