GBP/USD is trading slightly higher in delicate holiday trade ahead of US NFP quotes
The British Pound (GBP) is trading slightly higher against the US Dollar (USD) on Friday as slight dollar softness provides some support. However, price action remains subdued amid delicate liquidity conditions due to the Good Friday holiday, and trading activity is likely to pick up during the US session, ahead of the US non-farm payrolls (NFP) report.
At the time of writing GBP/USD is hovering around 1.3234, after falling to a four-month low of 1.3159 earlier this week. Meanwhile, the US Dollar Index (DXY), which tracks the value of the US dollar against a basket of six major currencies, is hovering near 100 after hitting a 10-month high of 100.64 on Tuesday. Read more…
GBP/USD: Geopolitical tensions fuel selling of the pound
GBP/USD on Friday, after a mighty decline the previous day, it stabilized around 1.3227. Growing geopolitical tensions weighed on the pound following up-to-date statements by American President Donald Trump. Increased military rhetoric against Iran and lack of clarity on reopening the Strait of Hormuz have led to a spike in oil prices and increased demand for the US dollar as a secure haven asset.
Additional pressure on the pound comes from the UK’s high dependence on energy imports and concerns about public finances. British government bond yields have risen along with energy prices, putting further strain on the currency. Read more…
GBP/USD Price Forecast: Rebound towards 1.3250 near the nine-day EMA
GBP/USD maintains profits after recording losses of over 0.5% the previous day, on Friday during Asian hours, the swing rate was around 1.3230. Technical analysis of the daily chart indicates a continued downtrend as the pair remains within a descending channel formation.
In the brief term, the sentiment remains slightly bearish as GBP/USD remains below the nine-day and 50-day exponential moving average (EMA), which limits the rebound and confirms the deteriorating near-term trend. The price action produced a series of lower highs and lower closes from the 1.35 area, adding to downside pressure. Read more…
