GBP/USD to test the 1.2350 level next week

GBP/USD Forecast: Pound sellers take action as key support fails

GBP/USD has extended its slide below 1.2500 after having closed the previous two days in negative territory. The broad-based dollar strength continues to weigh on the pair early Friday as investors gear up for the US inflation data.

On Thursday, the European Central Bank (ECB) said there will be a 25 basis points rate hike in July but failed to convince markets that they will opt for a 50 bps increase in September. The shared currency came under strong selling pressure and the British pound managed to capture some of the capital outflows out of the euro. With EUR/GBP falling nearly 100 pips from session highs on Thursday, GBP/USD’s losses remained relatively limited. Read more…

GBP/USD to test the 1.2350 level next week – ING

GBP/USD is trading just below the 1.25 psychological mark, nearly unchanged for the day. Economists at ING expect the cable to break down to 1.2350 next week.

“The fact that sterling money markets still price a further 175 bp of Bank of England (BoE) tightening by year-end goes to show that investors struggle to buy into the idea of ​​a pause anywhere.” Read more…

GBP/USD hits multi-week lows near 1.2420 pre-US CPI as UK growth fears linger

GBP/USD broke out to fresh multi-week lows in the 1.2420 area on Friday amid mixed FX market conditions and somewhat risk-averse pre-US inflation data trading conditions. The pair was last trading with losses of roughly 0.5% on the day, with bears eyeing a push lower into the 1.2300s in the week ahead should fears about the weakening UK economy linger. Read more…

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