GBP / USD forecast: Buyers may suffer pound loss if they fail to recall 1.2200
GBP / USD declined sharply in the initial European session but succumbed to a modest recovery after briefly falling below 1.2200. The close-term technical outlook gives no clear directional clues but the pair may remain on the back foot while markets remain risk-averse during the American session.
PMI data published by S&P Global revealed on Thursday that business activity in the UK’s manufacturing and service sectors continues to expand. A healthy pace in early June. Although the British pound erased a fraction of its daily losses after this data, it is difficult to gather further bullish momentum. Read more …
GBP / USD Reduces Intraday Loss, Strong USD Reds Near the 1.2200 Mark
The GBP / USD duo struggled to capitalize on the nightly bounce of nearly 100 pips from the weekly low and attracted some sales for Thursday’s second consecutive day. In the early part of the European session, spot prices fell to the area of 1.2170-1.2165, but later managed to rebound a few pips.
Amid expectations of the Hawkeye Fed, the US dollar was again in demand and received additional support from a worsening global economic outlook, which, in turn, put downward pressure on the GBP / USD pair. The markets are convinced that the Fed will stick to its policy to stubbornly fight high inflation and that the price is set for another 75 bps rate hike at the next FOMC meeting in July. Fed Chair Jerome Powell reiterated the bets on Wednesday, saying an ongoing rate hike would be appropriate. Read more …
GBP / USD: Still viewed within 1.2040-1.2400 – UOB
According to the FOB Strategists at UOB Group Lee Sue An and Quake Ser Liang, GBP / USD should be navigating the range of 1.2040-1.2400 in the coming weeks.
24-hour viewing: “GBP yesterday’s expectations of trading between ‘1.2225 and 1.2325’ are wrong, as it sank briefly to 1.2163, rose to 1.2314 and ended the day at 1.2265% (-0.11%). The sharp fluctuations have led to mixed outlooks and the possible price measures cannot be excluded in the range of 1.2200 / 1.2310.
The next 1-3 weeks: “On Monday (20 June, spot 1.2225), we highlighted that the outlook is mixed and that the GBP can continue trading in the unstable range between 1.2040 and 1.2400. There is no change in our outlook and we expect GBP trading between 1.2040 and 1.2400. Read more …