GBP/USD climbs to multi-day peak, beyond mid-1.2700s amid modest USD downtick
The GBP/USD pair is seen building on the previous day’s goodish rebound from the 1.2665 area, or a five-week low and gaining some follow-through positive traction for the second successive day on Thursday. The momentum lifts spot prices back above the mid-1.2700s during the Asian session and is sponsored by a modest US Dollar (USD) downtick.
As investors look past Thursday’s upbeat US labor market report, the USD Index (DXY), which tracks the Greenback against a basket of currencies, retreats further from the weekly high touched on Thursday and acts as a tailwind for the GBP/USD pair. In fact, the US Department of Labor (DoL) reported that there were 233K initial jobless claims in the week ending August 3 as compared to expectations for a 240K print and 249K in the previous week. The upbeat reading eased concerns about an economic downturn in the world’s largest economy, though dovish Federal Reserve (Fed) expectations continue to undermine demand for the buck. Read more…
GBP/USD lurches higher but still exposed to downside
GBP/USD found a step higher on Thursday, climbing roughly half of a percent as market sentiment continues to spool back up after a three-day plunge that kicked off in earnest late last week following a misprint in US Nonfarm Payrolls (NFP) figures.
Friday will close out the trading week with a thin economic calendar on both sides of the Atlantic, and markets will be gearing up for fresh updates on inflation in both the UK and the US. The Pound Sterling took a beating after a recent quarter-point rate cut from the Bank of England (BoE), and markets are on the lookout for signs of further UK rate cuts and an initial rate trim from the US Federal Reserve (Fed) expected in September. Read more…
GBP/USD Price Forecast: Rebounds at around 200-DMA, climbs above 1.2700
The Pound Sterling made a U-turn and surged during the North American session after falling shy of testing the 200-day moving average (DMA) at 1.2654, yet buyers stepped in and lifted the GBP/USD pair. At the time of writing, the major trades at 1.2744 gaining over 0.40%.
The GBP/USD bounced off the weekly lows, yet it’s not out of the woods. Momentum remains in the seller’s favor, but in the near term, buyers are in charge. The Relative Strength Index (RSI) remains below the 50-neutral line, but it’s aiming upwards. Read more…
