Pound Sterling Price News and Forecast: GBP/USD bulls are taking over but watch for W H3

GBP/USD Forecast: Boris’ worsening relations with China, Brexit impasse, caps cable’s recovery

“A resolute response” – the words of Liu Xiaoming, China’s ambassador to the UK are keeping the pressure on the pound. Liu referred to the UK’s contemplating of slapping sanctions on Chinese officials – in response to human rights violations in Xinjiang and its tighter grip on Hong Kong. 

Britain is likely to cancel its extradition treaty with HK, its former colony as soon as Monday. Prime Minister Boris Johnson and fellow Brexit supporters envisaged the UK striking independent trade deals with the wider world following the exit from the EU. However, worsening relations with the world’s second-largest economy do not bode well. Read More…

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GBP/USD bulls are taking over but watch for W H3

The GBP/USD has been rejecting from the W L3 Zone and at this point we can see the price moving up.

The price is trapped between 2 zones W H3 and W L3. This is the time for retracement towards W H3 level. 1.2600 zone could be good for sellers. If the price doesn’t close above 1.2600 we should see a move down. However 1.2500 zone is where buyers are. 1.2500-1.2600 seems to be the current range. Any close above 1.2600 or below 1.2500 will mark the next breakout move. Read More…

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GBP/USD Analysis: Continues to find some support ahead of 1.2500 mark

The GBP/USD pair witnessed some selling through the first half of the trading action on Friday, albeit lacked any strong follow-through. The downtick was solely led by some cross-driven weakness stemming from a strong bid tone surrounding the EUR/GBP amid the optimism over a deal on the EU’s proposed €750 billion coronavirus recovery fund. However, the emergence of some fresh selling around the US dollar extended some support and helped limit any deeper losses for the major.

The second wave of the coronavirus infections in the US fueled concerns that the economic recovery will take much longer than initially expected. This, in turn, undermined demand for the greenback, which was further pressured by the disappointing release of the Michigan Consumer Sentiment Index. The gauge snapped two months of an uptrend and fell to 73.2 in July from 78.1 in previous. The respondents’ view of economic conditions sank to 84.2 from 87.1. Read More…

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