GBP/USD Forecast: Pound Sterling could stretch lower if 1.2900 support fails
GBP/USD recovered modestly after dipping below 1.2900 on Monday but closed the day in the red. The pair stays in a consolidation phase in the European session as market participants stay on the sidelines ahead of key macroeconomic events.
The risk-averse market environment on growing concerns over an aggressive US trade policy weighing on the economic outlook caused GBP/USD to stretch lower at the beginning of the week. Read more…
GBP/USD turns sideways as 20-SMA blocks advances
GBP/USD continues to consolidate after the rebound from the January low of 1.2099 ran out of steam around the 1.3000 area in mid-March. Uncertainty surrounding Trump’s tariffs is likely making it difficult for the bulls to charge ahead with confidence even as the recent UK economic data have been satisfactory.
Following the pullback, the 20-day simple moving average (SMA) initially acted as support but has now risen above the price action to cap any gains. Slightly beneath it is the 61.8% Fibonacci retracement of the September 2024-January 2025 downleg at 1.2923 and together with the 1.2875 level, they are acting as a strong support base for the pair. Read more…
