GBP/USD Price Forecast: Resumes decline after facing selling pressure above 20-day EMA
The GBP/USD pair trades 0.2% lower to near 1.3400 during the European trading session on Thursday. The pair is broadly under pressure due to fears of a resumption of the Middle East war after the exchange of attacks between the United States (US) and Iran.
During the day, Iran’s Islamic Revolutionary Guard Corps (IRGC) has claimed its authority near the Strait of Hormuz, stating that Tehran is controlling and managing the passage, and any disruption will be met with a ‘decisive response’. The IRGC added that vessels need to “obtain permission and coordinate with the Navy to pass through Hormuz. Read more…
British Pound recovers against US Dollar; outlook remains weak due to Iran worries
The British Pound claws back half of its early losses and rebounds to near 1.3400 against the US Dollar (USD) during the European trading session on Thursday from the intraday low of 1.3367. The recovery move in the GBP/USD pair appears to be short-lived as Middle East conflicts have re-escalated.
At press time, S&P 500 futures and Asian stock markets have also recovered significantly. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, retreats from its intraday high of 99.54, but is still 0.18% higher to near 99.40. A slight correction in the WTI Oil price has also been observed from the day’s high of $91.17 to near $90.14. Read more…
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