GBP/USD trims two days of losses but fails to reclaim 1.3200

GBP/USD trims two days of losses but fails to reclaim 1.3200 amid a positive sentiment

The British pound rebounded from intraday losses in the mid-North American session, though it failed to reclaim the 1.3200 mark, courtesy of a risk-on market mood, Fed hawkishness, and Bank of England’s rate hike, with one dissenter, perceived as a dovish increase. At the time of writing, the GBP/USD is trading at 1.3187. Late in the North American session, the market sentiment improved, boosting appetite for risk-sensitive currencies like the GBP. Nevertheless, amid an increased appetite for the greenback, disappointing data coming from the UK put a lid on the GBP/USD recovery. Read more…

GBP/USD Weekly Forecast: Correction set to extend in the US NFP week

Clocks will turn forward in Europe and the UK next week but the corrective move in GBP/USD is unlikely to alter its course. Concerns over soaring inflation and Ukraine tensions resurfaced and crippled GBP/USD’s recovery rally from 2022 lows. GBP bulls lost conviction, as the central banks’ divergence returned to the fore. In the week ahead, the US Nonfarm Payrolls, Fed’s preferred PCE inflation and BOE-speak will hold relevance, as the Russia-Ukraine conflict rages on. Read more…

GBP/USD Forecast: Pound fluctuates between key technical levels

GBP/USD has been moving sideways in a relatively tight channel in the second half of the week. The pair needs to break out of the 1.3160-1.3200 range to determine its next short-term direction. The data published by the UK’s Office for National Statistics showed on Friday that Retail Sales in the UK declined by 0.3% on a monthly basis in February after rising by 1.9% in January. This print missed the market expectation for an increase of 0.6% by a wide margin and made it difficult for the British pound to continue to gather strength. Read more…