GBP/USD drops to its lowest level since June, further below 1.2600 on stronger USD
The GBP/USD pair prolongs its rejection slide from the 1.2800 mark touched earlier this week and remains under some selling pressure for the fourth successive day on Friday. Spot prices drop to a more than two-month low, around the 1.2585 region during the Asian session, confirming the overnight breakdown through a technically significant 100-day Simple Moving Average (SMA) for the first time since March 2023.
The British Pound (GBP) is undermined by rising bets for a lower Bank of England (BoE) peak rate, which, along with a bullish US Dollar (USD), continues to exert some downward pressure on the GBP/USD pair. The disappointing UK PMI prints released on Wednesday revived fears about an impending recession and convinced market participants that the BoE will not need to raise rates as high as previously thought to bring inflation back down to the target. In fact, money markets are now pricing in a small chance of any further rate hike after the anticipated 25 bps lift-off in September. Read more…
GBP/USD Price Analysis: Cable bears flirt with 1.2600, focus on Fed, BoE talks
GBP/USD seesaws around the lowest level in two months, after falling the most since late July to refresh the multi-day bottom, as markets await the top-tier central bankers’ speech on early Friday. That said, the Cable pair makes rounds to 1.2600 while poking a four-month-old horizontal support area surrounding 1.2590–2570.
Not only the strong support zone but the nearly oversold conditions of the RSI (14) line also challenge the Pound Sterling sellers ahead of Friday’s speech from Fed Chair Jerome Powell, followed by Saturday’s statements from Bank of England (BoE) Governor Andrew Bailey. Read more…
