GBP/USD Forecast: Pound Sterling needs a soft NFP to reclaim 1.2000
GBP/USD has preserves its recovery momentum and advanced to the 1.1950 area early Friday after having managed to close above 1.1900 on Thursday. The pair’s technical outlook points to a bullish tilt in the short term but investors are likely to ignore the technical readings when assessing the US February jobs report.
The US Dollar (USD) failed to benefit from the negative shift witnessed in risk sentiment on Thursday and the US Dollar Index lost nearly 0.4%. The worse-than-expected weekly Initial Jobless Claims data and the 2% decline in the benchmark 10-year US Treasury bond yield seem to have made it difficult for the USD to attract investors. Read more …
GBP/USD outlook: Sterling extends recovery on better than expected UK GDP; US NFP is next
Cable rose further in early Friday’s trading, extending the rally on Thursday (up nearly 0.80%) sparked by unexpected acceleration in US weekly jobless claims (strongest rise in five months). Additional support for sterling came from UK GDP data which showed that economy grew by 0.3% in January after contracting by 0.5% in December and beating forecast for 0.1% expansion, adding to expectations for another BOE rate hike in the policy meeting on March 23.
All eyes are on US February non-farm payrolls, due later today (205K f/c vs 517K Jan), which is expected to offer more clues on the Fed’s next steps and provide fresh direction signal. Technical studies on daily chart have improved after Thursday’s rally signaled formation of Doji reversal pattern and generated bullish signal on return and close above 200DMA. Read more…
GBP/USD Price Analysis: Bulls flirt with 1.2000 mark, focus remains on US NFP report
The GBP/USD pair builds on this week’s bounce from the 1.1800 mark, or its lowest level since November 2022, and gains some follow-through traction for the third successive day on Friday. The momentum lifts spot prices to a three-day high during the first half of the European session, with bulls now awaiting a sustained strength beyond the 1.2000 psychological mark before placing fresh bets.
The British Pound gets a boost on the last day of the week after the monthly UK GDP report showed the economy expanded by 0.3% in January. The reading exceeded market expectations for a growth of 0.1% and marks a sharp rebound from the 0.5% contraction recorded in December. The US Dollar, on the other hand, remains on the defensive amid reduced bets for a jumbo 50 bps lift-off at the March FOMC meeting, which, in turn, lends additional support to the GBP/USD pair. Read more…