January 29, 2023

Pound News & Forecast – GBP-USD Contemplates More Upside Beyond 1.2400

The GBP-USD witnesses new supply on the final day of this week as it encounters another rejection near 1.2400. Meanwhile, the pair retains an upside stance, with the road with the least resistances remaining higher, and moves past 1.2400 expected.

Spot prices reverse last day’s optimistic move, snapping a 3-day winning spree amidst a minor United States dollar strength, supported by continued recoveries in the United States Treasury bond yields. Further, the benchmark ten-year United States government bond yield moved away from the lowest mark since mid-September (hit on Thursday) amidst doubt over the Federal’s hike trajectory in the upcoming sessions.

Remember, market participants have expected the United States central bank to adopt a softer stance amidst signals of eased inflationary pressures. In that scenario, Thursday’s upbeat macro data from the U.S. and several Federal officials’ hawkish stances force investors to reduce the bets for February’s minor 25bp lift-off.

Meanwhile, this underpins the USD while propelling the United States’ bold yields. On the other side, disappointing macro data from the United Kingdom weighed on the British pound.

GBP-USD Price Analysis

The GBP-USD pair displays back&forth actions beneath the round-market resistance at 1.2400 during the Asian session. It turned sideways as market players await the U.K. Retail Sales number for new impetus. Analysts expect improvements from the economic figures, citing enhanced wages because of the tightened labor market.

The DXY attempts to escape the woods and has traded within a constricted array in Asia while trying northbound breaks. Meanwhile, the S&P 500 futures are yet to surrender early gains, indicating slight optimism in the dominant bearish mood.

Fed Concerns and Downbeat U.K. Retail Sales Dips GBP-USD to 1.2350

GBP-USD dipped to new lows of around 1.2350 as the United Kingdom Retail sales number disappointed on Friday. But, remember, the latest hawkish remarks from Andrew Bailey of BoE and JPMorgan’s optimistic prediction supports the GBPUSD pair.

Decembers Retail Sales from the United Kingdom flashed a 1.0% month-over-month contraction against the market’s 0.5% favored growth, and the past readings of -0.4%.as the United Kingdom Retail Sales control a massive share in Britain’s Gross Domestic Product; the GBP-USD declines after the primary data.

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