GBP/USD Price Forecast: Consolidates below mid-1.2500s, not out of the woods yet
The GBP/USD pair consolidates in a range below mid-1.2500s during the Asian session on Tuesday and remains within striking distance of its lowest level since May touched last week. Moreover, the fundamental backdrop and the technical setup suggest that the path of least resistance for spot prices remains on the downside.
The US Dollar (USD) stands firm near a two-year peak and continues to draw support from the Federal Reserve’s (Fed) hawkish signal that it would slow the pace of interest rate cuts in 2025. The British Pound (GBP), on the other hand, is undermined by the Bank of England’s (BoE) split vote decision to leave interest rates unchanged and a dovish outlook. This, in turn, validates the near-term negative outlook for the GBP/USD pair. Read more…
GBP/USD set to swoon on holiday-shortened week
GBP/USD waffled near the 1.2550 level on Monday, kicking off the holiday trading week with a third of a percent decline as market sentiment coils. Market volumes are set to drain out of global exchanges as investors broadly hang up their hats for the Christmas holiday, and global markets will be shuttered on Wednesday.
UK Gross Domestic Product (GDP) missed to the downside early Monday, with quarterly UK GDP easing to a flat 0.0% in the third quarter compared to the expected hold near 0.1%. Annualized UK GDP also missed forecasts, coming in at 0.9% YoY. Investors had expected the yearly figure to print in-line with the previous period’s figure of 1.0%. Read more…
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