GBP/USD Forecast: Sellers to retain control below 1.2500
GBP/USD has extended its slide mid-week and touched its lowest level since late April, near 1.2420. The pair’s bearish outlook stays intact in the short term and sellers could continue to dominate the action as long as 1.2500 holds as resistance.
The US Dollar benefited from risk aversion on Tuesday and forced GBP/USD to stay on the back foot. Although latest headlines surrounding the US debt limit negotiations suggest that there could be a deal to raise the debt ceiling by the end of this week, markets remain cautious on Wednesday. Read more …
GBP/USD plummets to three-week low, eyes 1.2400 amid broad-based USD strength
The GBP/USD pair adds to the previous day’s losses and remains under heavy selling pressure for the second successive day on Wednesday. The downward trajectory remains uninterrupted through the first half of the European session and drags spot prices to a three-week low, around the 1.2420 region in the last hour.
The British Pound continues to be undermined by rather unimpressive UK monthly jobs data released on Tuesday, which fueled speculations that fewer rate increases by the Bank of England (BoE) will be needed in the coming months to bring down inflation. This, along with some follow-through US Dollar (USD) buying, aggravates the bearish pressure surrounding the GBP/USD pair and contributes to the steep intraday decline. Read more …
