GBPUSD Forecast: Sellers look to take action as Pound Sterling tests key support

GBPUSD has reversed its direction and retreated below 1.1500 early Wednesday after having managed to close in positive territory on Tuesday. Following the latest pullback, the pair’s near-term technical outlook suggests that buyers are struggling to retain control of the action. In case safe-haven flows start to dominate the financial markets, GBPUSD could extend its slide in the second half of the day.

The upbeat market mood didn’t allow the safe-haven US Dollar (USD) to outperform its rivals in the American session on Tuesday and helped GBPUSD erase its daily losses. The US stock index futures are down 0.2% during the European trading hours, pointing to a cautious sentiment. Read more…

GBPUSD

GBPUSD drops to fresh daily low, eyes mid-1.1400s amid modest USD uptick

The GBPUSD pair edges lower on Wednesday and moves further away from over a one-week high, around the 1.1600 round figure touched the previous day. The selling bias picks up pace during the first half of the European session and drags spot prices to a fresh daily low, around the 1.1470-1.1465 region in the last hour.

A combination of factors assists the US Dollar to stall its recent downfall to the lowest level since September 20, which, in turn, is seen acting as a headwind for the GBPUSD pair. Despite reduced bets for a more aggressive policy tightening by the Fed, the markets are still pricing in at least a 50 bps rate hike in December. This remains supportive of elevated US Treasury bond yields, which, along with the prevalent cautious market mood, offers some support to the safe-haven greenback. Read more…

GBPUSD to see a deeper but still corrective recovery – Credit Suisse

GBPUSD needs to remove 1.1565 to see its downtrend from February break to clear the way for a deeper but still corrective recovery back to 1.1739, analysts at Credit Suisse report.

“GBPUSD remains capped below its downtrend from February, currently seen at 1.1565, but with weekly MACD momentum having turned higher, our bias remains for a break above here and then the 1.1647 recent high for a deeper recovery to the 1.1739 September high, potentially the 38.2% retracement of the 2021/2022 fall at 1.1838, but with this 1.1739/1.1838 zone expected to prove a tough barrier.” Read more…

This article was originally published by Fxstreet.com.Read the original article here.

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