GBP/USD outlook: Bears probe again through key 1.30 support

Cable remains in a negative mode in early Monday and probed again through key 1.30 support (psychological/Mar 15 low), following last Friday’s short-lived dip to 1.2982 (the lowest since Nov 2020).

Rising US dollar keeps the pound in defensive, while weaker than expected UK Feb GDP data added pressure to the currency, threatening of a final clear break of 1.30 pivot that would risk extension towards 1.2855/ 20 zone (lows of Nov/Oct 2020 respectively). Read more…

GBP/USD moves sideways ahead of UK data dump

The Australian dollar remained under pressure after the country’s prime minister called for a new election in May. Scott Morrison will face off with Anthony Albanese, the leader of the center-left Labor Party. The campaign has focused mostly on the rising inflation in the country and defense. While Morrison is trailing in polls, analysts expect that the results will be close. The announcement came a few days after the Reserve Bank of Australia (RBA) delivered its interest rate decision. The bank now expects that rates will start rising in June. Analysts expect a 0.25% rate hike and two more later this year. Read more…

GBP/USD Forecast: Pound to extend recovery as long as 1.3000 holds

GBP/USD has staged a rebound after having declined below 1.3000 in the late Asian session on Monday. In case risk flows start to dominate the financial markets, the pair could extend its correction in the short term.

Rising US Treasury bond yields provided a boost to the greenback at the beginning of the week. The US Dollar Index (DXY), which rose more than 1% amid the Fed’s aggressively hawkish stance last week, edged higher earlier in the day. With the market mood-improving modestly in the European morning, however, the DXY turned negative on the day. Read more…