Why sterling could temporarily bounce, before the next dollar storm

GBP/USD Forecast: Why sterling could temporarily bounce, before the next dollar storm

GBP/USD has tumbled below 1.37 on fear-related dollar strength. Tensions toward the Fed and the BOE are set to add to pressures on cable. Monday’s four-hour chart reflects oversold conditions. How low can cable go? GBP/USD has hit a four-week low and is on course for a third consecutive day – with fear driving the dollar higher.  The trend may end – or at least undergo a correction. Read more…

GBP/USD trades near month lows around 1.3650 ahead of FOMC meeting

The British pound falls to monthly lows, trades around 1.3655. The market-mood is in risk-off mode, weighed by Chinese real-estate Evergrande and broad-based US dollar strength. Central banks of both countries, to hold its monetary policy meetings, on this week. GBP/USD is declining for the third day in a row, down 0.61%, trading at 1.3657 at the time of writing. Read more…

GBP/USD outlook: Risk aversion keeps pound under pressure but bears face headwinds

Cable extends a steep fall into third straight day and hit a four-week low (1.3661) on Monday. Strong risk aversion in the market lifts the dollar and depresses stocks, keeping the pound under increased pressure.Bears extended below 1.3700 handle but faced headwinds on approach to pivotal Fibo support at 1.3647 (38.2% of 1.2675/1.4249 ascend) and also from rising thick weekly cloud (cloud top lays at 1.3698). Read more…