Connect with us

Hi, what are you looking for?

Oracle of  Omaha Says – Investing and Stock NewsOracle of  Omaha Says – Investing and Stock News


GBP to USD Holds Steady Within Range Against Dollar

GBP to USD Holds Steady Within Range Against Dollar

The GBP/USD currency pair remains within a range-bound pattern, according to economists at UOB Group. Analysts suggest that the pair is likely to continue navigating between the levels of 1.2650 and 1.2850 for the time being, indicating a lack of significant directional movement.

During Wednesday’s trading session, the British pound experienced a substantial decline against the US dollar, dropping toward the critical support level of 1.2650. This downward movement reflects increased selling pressure on the pound and highlights the challenges faced by the currency.

Technical Analysis Indicates Potential Reversal for GBP/USD

Technical analysis of the 100 sterling to USD pair suggests a reversal in the making. The recent plunge towards the 1.2650 level, which previously acted as strong resistance, indicates the presence of “market memory.” Market participants may view this as an opportunity to buy, particularly considering the pound’s overall strong uptrend and the Bank of England’s commitment to combat inflation. However, a pullback after a prolonged upward movement is not a surprise. Especially, considering that the market cannot sustain a single direction indefinitely.

Looking at the longer-term outlook, the British Pound coin is anticipated to gain strength and potentially reach the 1.30 level if fundamental factors remain consistent. In light of prevailing inflation concerns, central banks are expected to maintain a tight monetary policy. This backdrop supports a “buy on the dip” sentiment, where market participants seek buying opportunities during pullbacks. The 50-day exponential moving average (EMA) serves as a potential support level of around 1.2575, while resistance levels of 1.2750 and 1.2850 may come into play if the pound rebounds.

GBP/USD Stability Amidst USD/JPY Strength and AUD/USD Weakness

The pound remains relatively unchanged against the dollar. Besides, the US dollar continues to advance against the Japanese yen (USD/JPY) and the Australian dollar (AUD/USD). The contrasting movements in these currency pairs indicate the broader dynamics influencing the foreign exchange market.

Tuesday’s trading session saw a partial recovery for GBP to Dollar forecast, potentially signaling a resumption of an upward trajectory. However, to reaffirm a short-term bearish view, a decline below the $1.27 level would be necessary. That would open the possibility of testing trendline support from the lows observed in late May. Conversely, a more substantial recovery could bring the mid-June highs above $1.28 back into focus as potential resistance levels to watch.



The post GBP to USD Holds Steady Within Range Against Dollar appeared first on FinanceBrokerage.


You May Also Like

Latest News

A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...

Latest News

Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

Latest News

President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

Latest News

An Elias Law Group suit filed Thursday seeks to reinstate Wisconsin voters’ ability to deposit absentee ballots in drop boxes.The practice was barred by...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023