GBP/USD Forecast: Pound Sterling to break out of range on US inflation data
GBP/USD has extended its sideways grind following Wednesday’s choppy action and was last seen trading at around 1.2150. December inflation data from the US could significantly influence the US Dollar’s valuation and provide a direction clue to the pair in the second half of the day.
On Wednesday, the US Dollar failed to stage a rebound as Wall Street’s main indexes continued to push higher after having closed in positive territory on Tuesday. Nevertheless, GBP/USD action remained limited with investors refraining from making large bets ahead of the Consumer Price Index (CPI) data. Read more…
GBP/USD: Golden cross formed, risk modestly skewed to the upside – OCBC
The GBP/USD pair is currently trading around the mid-1.2100s. Economists at OCBC Bank keep a mild bullish bias on Cable.
“Golden cross formed, with the 50-Day Moving Average (DMA) cutting 200DMA to the upside. Risk modestly skewed to the upside.”
“Resistance is seen at 1.2220 levels.”
“Support at 1.2085 (21DMA), 1.2050 (50% fibo retracement of 2022 high to low), 1.2020 (50, 200DMAs).” Read more…
GBP/USD: Short-term headwinds for the Pound to cap any gains after US CPI – Scotiabank
GBP/USD consolidates below 1.22. The Pound may struggle to benefit from Dollar weakness after US inflation data, according to economists at Scotiabank.
“More strike action was announced today, adding to ongoing industrial action in the health and transport sectors. Meanwhile, easing energy prices have pushed peak BoE pricing to 4.41%, down from a recent high above 4.75%. These factors may slow GBP gains versus the softer USD in the event of more Dollar weakness after US inflation data.” Read more…
