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GBP/USD outlook: Cable falls to new 2022 low after weak UK GDP data added to negative sentiment
Cable extends steep fall of past four weeks and probed below 1.22 handle to hit new 2022 low. Weak UK GDP data, released today, added to negative sentiment, fueled by risk aversion that continues to inflate the US dollar.
Negative fundamentals dominate and so far counter signals from strongly oversold daily and weekly studies, however, some price adjustment should be anticipated in the coming sessions, in response to oversold conditions. Upticks are expected to be limited and capped under 1.2400 zone (May 11 spike high/falling daily Tenkan-sen) to keep bears intact and offer better levels to re-enter strong bearish market. Read more …
GBP/USD Price Analysis: Ascending triangle breakdown on 4H targets 1.2158
GBP/USD is trading back below 1.2200 following a temporary pullback to near the 1.2230 region, as disappointing UK GDP data continues to power GBP bears. The UK economy contracted 0.1% in March while expanding merely 0.8% QoQ in the first quarter of 2022, backing the BOE’s forecasts of a likely recession later this year.
The downbeat UK growth data combined with the risk-off market profile keeps the downside pressure intact on cable. Investors shrugged off the upbeat comments from the BOE Deputy Governor Dave Ramsden, as he said that “the central bank isn’t talking down the economy in forecasts.” Read more …
GBP/USD struggles near its lowest level since May 2020, keeps the red below 1.2200
The GBP/USD pair managed to rebound a few pips from a two-year low and was last seen trading just below the 1.2200 mark, down nearly 0.50% for the day.
The pair extended the overnight rejection slide from the 1.2400 mark and witnessed heavy follow-through selling on Thursday, marking the sixth successive day of a negative move. The British pound took a hit following the release of weaker UK macro data, which, along with sustained US dollar buying exerted pressure on the GBP/USD pair. Read more …