GBP/USD hits two-week high, looks to build on momentum beyond 1.2500 mark
The GBP/USD pair attracts fresh buying following an intraday dip to the 1.2445 region and build on its steady intraday ascent through the early North American session. The uptick, marking the third successive day of a positive move, pushing spot prices to a two-week high, around the 1.2515-1.2520 region in the last hour – though it lacks bullish conviction. Read more…
GBP/USD gathers strength for a sustainable move above 1.2500
The GBP/USD pair is consolidating near the psychological resistance of 1.2500 in the Asian session. The Cable is gathering strength for a sustained breakout above 1.2500 after a few failed attempts. Rising expectations of more interest rate hikes from the Bank of England (BoE) to arrest double-digit stubborn inflation are fueling fresh blood into the Pound Sterling. Read more…
GBP/USD bulls reaching for a close above 1.2500
GBP/USD is flat in Tokyo following an impressive rally on Thursday in a continuation of the short squeeze. The bulls reached the prior resistance around 1.2500 and sit there currently waiting for a fresh impetus sat not far off a 10-month peak. Read more…
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The pound sterling (GBP) hit a two-week high against the US dollar (USD) last week, a sign of strength in the British currency. The pound gained 0.63 percent against the dollar, reaching its highest level since mid-January.
The sterling’s bullish move has been credited to upbeat UK economic figures and a shift in sentiment towards Brexit. Growth in the UK economy accelerated in the fourth quarter, as trade and business investments helped to offset weak household spending. Meanwhile, the risk of a no-deal Brexit has been decreasing, with talk of a compromise agreement between the UK government and the EU.
The pound has also been buoyed by a weak dollar. The US Federal Reserve has indicated it is in no rush to raise interest rates because of weak inflation and global economic uncertainty. This has led to a decline in the US currency, allowing the pound to take advantage of the situation.
Looking ahead, analysts are cautiously optimistic about the outlook for GBP/USD. While the UK still faces significant risks in the form of Brexit, there is also the potential for further gains should investors continue to remain bullish. British economic data is expected to remain strong and any further weakness in the dollar could also provide an opportunity for further gains.
For those looking for the best time to buy the pound, the current strength of the currency suggests now could be a good time, although investors should monitor the news for any developments on Brexit.