GBP/USD Weekly Forecast: Pound Sterling finds support heading into a holiday-shortened week
The Pound Sterling (GBP) faced rejection yet again, just shy of the 1.3600 mark against the US Dollar (USD), leading to a solid pullback in theGBP/USD pairfrom one-month highs to eight-day lows.However, the renewed USD weakness heading into the weekend opened the door for a decisive recovery in the pair.
A down week, overall, for GBP/USD, characterized mainly by a broad-based US Dollar resurgence until Federal Reserve Chairman Jerome Powell’s speech at the annual Jackson Hole Symposium. Two primary catalysts, in risk aversion and reduced dovish sentiment around the US Federal Reserve, helped the Greenback stage a decent comeback against its major currency rivals. Read more…
GBP/USD attracts some sellers below 1.3500 on renewed US Dollar demand
TheGBP/USD pairfaces some selling pressure around 1.3495 during the Asian session on Monday. The major pair edges lower amid the renewed US Dollar (USD) demand. However, dovish remarks from the Federal Reserve (Fed) ChairJerome Powellmight cap the GBP/USD’s downside.Later on Monday, the US New Home Sales and Chicago Fed National Activity Indexdata will be published.
Fed’s Powell said on Friday at theJackson Holesymposium that the central bank is headed for an interest-rate cut as soon as its next policy meeting in September. Powell further stated that the US economy is facing a “challenging situation,” with inflation risks now tilted to the upside and employment risks to the downside. Growing expectations of US Fed rate cuts could weigh on the Greenback and help limit the major pair’s losses. Read more…
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