GBP/USD edges lower to near 1.2200 as UK Gilt yields drop
GBP/USD edges lower after two days of gains, trading around 1.2220 during the Asian hours on Thursday. The Pound Sterling (GBP) receives downward pressure following lower-than-expected inflation data from the United Kingdom (UK) released on Wednesday.
The yield on the UK 10-year Gilt fell to 4.73%, retreating from multi-decade highs, after official data showed an unexpected drop in headline UK inflation, increasing expectations of rate cuts by the Bank of England (BoE). Read more…
GBP/USD Price Forecast: Edges up, stabilizes near 1.2250
The Pound Sterling posted modest gains on Wednesday after hit seesawing in a wide range of 1.2154 – 1.2306 during the day, yet stabilized at current exchange rates. At the time of writing, the GBP/USD trades at 1.2241, set to close below Tuesday’s high of 1.2249.
The GBP/USD downtrend remains in place, although it consolidated at around 1.2210 – 1.2240. During the session, buyers tested strong resistance at the April 22 low of 1.2299 before retreating beneath 1.2250. Should they hold to gains above the latter, they could challenge 1.2299 before targeting 1.2351, the January 2 swing low that turned resistance. Further upside is at 1.2400. Read more…
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