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GBP/USD Forecast: Pound Sterling could correct lower on risk aversion GBP/USD continued to push higher during the European trading hours on Tuesday and climbed above 1.2800 for the first time in over two months. With the US Dollar (USD) benefiting from upbeat data in the American session, however, the pair erased its daily gains. Early Wednesday, GBP/USD moves sideways in a very narrow channel slightly above 1.2750. The Conference Board’s Consumer Confidence Index improved to 102.00 in May from 97.5 in April, while the Expectations Index rose to 74.6 from 68.8. Assessing the US consumer sentiment survey’s findings, “the strong labor market continued to bolster consumers’ overall assessment of the present situation,” said Dana M. Peterson, Chief Economist at the Conference Board. Read more… GBP/USD outlook: Possible price adjustment before final break through 1.2800 zone Cable firmed in early Wednesday’s trading after hitting nine-week high on Tuesday (1.2800), but subsequently pulling back on unexpectedly strong rise in US consumer confidence in May, which temporarily inflated dollar. Broken Fibo barrier at 1.2753 (76.4% of 1.2893/1.2299) reverted to solid support (reinforced by 5DMA, which so far holds dips, however risk of deeper pullback is still present as 14-d momentum turns south from extreme highs and RSI is in sideways mode, just under the overbought zone borderline. Read more… Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-could-correct-lower-on-risk-aversion-202405291001

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Filed under: News - @ May 29, 2024 1:12 pm