GBP/USD attracts buyers for three days straight amid weaker US Dollar

Finance

GBP/USD attracts buyers for three days straight amid weaker US Dollar

GBP/USD Price Forecast: Stands firm near mid-1.3400s, seems poised to climb further

The GBP/USD pair gains positive traction for the third consecutive day on Friday and moves further away from its lowest level since early August, around the 1.3250-1.3245 region touched earlier this week. Spot prices currently trade around mid-1.3400s, or a one-and-a-half-week high touched on Thursday amid a broadly weaker US Dollar (USD), though the intraday uptick lacks bullish conviction.

Tuesday‘s disappointing UK employment data fueled speculations that the Bank of England (BoE) could continue cutting rates gradually. This, along with concerns over the UK’s fiscal outlook ahead of the crucial Autumn budget in November, is holding back traders from placing aggressive bullish bets around the British Pound (GBP) and turning out to be a key factor acting as a headwind for the GBP/USD pair. Read more…

GBP/USD extends bullish rebound, continuation faces fresh technical challenge

GBP/USD stepped into a second straight winning session on Thursday, around three-tenths of one percent and bringing Cables two-day recovery to a little over one percent, bottom-to-top. UK data came in more or less above expectations, bolstering the Pound Sterling (GBP) as it extends a technical rebound from the 200-day Exponential Moving Average (EMA) near 1.3270.

Cable is now facing a fresh technical ceiling near the 50-day EMA at 1.3450, but momentum remains in favor of GBP bulls as US data remains a limited affair. There is little of note on both sides of Fridays data docket, with the UK data pool now empty and the US side dark amid the ongoing government shutdown, which has caused the release of official datapoints to dwindle down to functionally nothing. Read more…

GBP/USD extends recovery amid US Dollar softness and modest UK GDP growth

The British Pound (GBP) strengthens against the US Dollar (USD) on Thursday, extending gains for the second day in a row. At the time of writing, GBP/USD is trading around 1.3431, rebounding after briefly falling to a two-and-a-half-month low on Tuesday.

The recovery in Sterling comes as the Greenback softens amid escalating US-China trade tensions and prolonged uncertainty surrounding the United States (US) government shutdown, now in its third week. Traders are also fully pricing in back-to-back 25-basis-point interest rate cuts by the Federal Reserve (Fed) at the upcoming October and December meetings. Read more…