GBP/USD Forecast: Pound sterling could stretch lower unless it reclaims 1.3100
GBP/USD failed to build on Tuesday’s modest recovery gains and ended the day in the red on Wednesday. The pair fluctuates in a tight channel below 1.3100 in the European session on Thursday as the market focus shifts to September inflation data from the US.
The US Dollar (USD) gathered strength against its rivals after the minutes of the Federal Reserve’s (Fed) September policy meeting offered a hawkish surprise. The publication reaffirmed that a “a substantial majority” of Fed policymakers supported the decision to lower the policy rate by 50 basis points (bps) but it showed that there was even a broader consensus that this initial step would not lock the Fed into any specific pace of policy-easing in the future. Read more…
GBP/USD: Expected to drift lower, potentially below 1.3050 – UOB Group
The Pound Sterling (GBP) is expected to drift lower, potentially dropping below 1.3050; lackluster momentum suggests 1.3000 is out of reach. In the longer run, price action suggests further GBP weakness; the next major support at 1.3000 may not come into view so soon, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
24-HOUR VIEW: “Yesterday, we expected GBP to trade in a sideways range of 1.3065/1.3135. GBP subsequently traded between 1.3057 and 1.3106, closing slightly lower at 1.3075 (-0.21%). The mild decline resulted in a slight increase of momentum. Today, we expect GBP to drift lower, potentially dropping below 1.3050. Due to the lackluster momentum, any decline is unlikely to reach 1.3000. Resistance levels are at 1.3090 and 1.3115.” Read more…
