GBP/USD Price Forecast: Reclaims 1.3400 amid a weaker USD; not out of the woods yet
The GBP/USD pairattracts some buyers during the Asian session on Thursday and moves away from a nearly two-week trough, around the 1.3370 area touched the previous day. Spot prices climb further beyond the 1.3400 mark in the last hour and, for now, seem to have snapped a two-day losing streak amid a broadly weaker US Dollar (USD).
From a technical perspective, the recent repeated failures near the 100-period Simple Moving Average (SMA) and the downfall along a descending channel since the beginning of this month favor the GBP/USD bears. Furthermore, negative oscillators on 4-hour/daily charts suggest that any subsequent move up might still be seen as a selling opportunity and run the risk of fizzling out rather quickly. Read more…
GBP/USD posts modest gains above 1.3400 amid ongoing US government shutdown
The GBP/USD pairposts modest gains near 1.3405, snapping the two-day losing streak during the early Asian session on Thursday. The US Dollar (USD) softens against the Pound Sterling (GBP) amid concerns over a prolonged US government shutdown. The speech by Federal Reserve (Fed) ChairJerome Powellwill be in the spotlight later on Thursday.
The US government shutdown has entered its ninth day with no hint of progress toward a resolution as the Senate on Wednesday again rejected dueling Republican and Democratic funding proposals to end the federal shutdown. The competing stopgaps had already failed to pass in five previous votes. Read more…
GBP/USD stabilizes as US Dollar eases, traders await Fed minutes
GBP/USD recovers ground on Wednesday as the US Dollar (USD) trims some of its earlier gains amid a scarce economic docket on both sides of the Atlantic. At the time of writing, the pair trades at 1.3425, up 0.08%. The British Pound (GBP) stopped the bleeding asrisk appetiteimproved, and the USD retreated. Nevertheless, the USDollar Index(DXY), which tracks the performance of the US Dollar’s value against a basket of six currencies, including Sterling, is up 0.25% at 98.82, but beneath daily highs of 98.98.
The US government shutdown extends to its eighth day. Bloomberg reported that US House Speaker Mike Johnson opposes any attempt to end the Senate filibuster to bypass Democrats and reopen the government. The lack ofeconomic datain the US left traders adrift on comments byFederal Reserve(Fed) officials. St. Louis Fed Alberto Musalem and Governor Michael Barr crossed the wires but did not comment on monetary policy or theeconomic outlook. Later, traders will digest the latest minutes of the Federal Open Market Committee (FOMC) monetary policy meeting.Read more…
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