GBP/USD Price Forecast: Immediate resistance level appears above 1.3450
GBP/USD is attracting some buyers to around 1.3430 during early European trading hours on Monday. The US dollar weakens against the pound after Federal Reserve Chairman Jerome Powell said US President Donald Trump threatened to file a criminal indictment against him, raising concerns about the independence of the central bank.
The U.S. Department of Justice sent the agency subpoenas and threatened criminal indictment over testimony he gave before a Senate committee about the renovation of the Federal Reserve Bank buildings. Powell called the investigation “unprecedented” and said he believed it was opened because he had angered Trump over his refusal to cut interest rates despite repeated public pressure from the president. Read more…
GBP/USD rebounds from three-week low, eyes mid-1.3400s as Fed concerns weigh on US dollar
The GBP/USD pair is attracting some buyers near the technically important 200-day simple moving average (SMA) and recovering slightly from the lowest level in almost three weeks, which was touched during the Asian session on Monday. Spot prices currently appear to have snapped a four-day losing streak and are currently trading around the 1.3435 area, up 0.20% on the day.
Despite the global flight to safety and lower bets on more aggressive policy easing by the US Federal Reserve (Fed), renewed concerns about the independence of the US central bank are weighing on the US dollar and benefiting the GBP/USD pair. In fact, Federal Reserve Chairman Jerome Powell said in a statement that the Justice Department is threatening to file a criminal indictment against him. Powell added that the threat of criminal charges is the result of the Fed’s best-in-we assessment of what will serve the public, rather than following the president’s preferences. Read more…
GBP/USD Weekly Forecast: Can Sterling Withstand Renewed Demand for US Dollar?
The British pound saw a sharp correction against the US dollar, which took the GBP/USD pair from four-month highs at 1.3568 to test a weekly low near 1.3400. The US dollar’s impressive recovery and rising geopolitical tensions globally remained major headwinds to the GBP/USD uptrend, resulting in a notable bounce over the past week.
Demand for the safe-haven US currency rose at the start of the week as markets took into account US military aggression in Venezuela and the arrest of former President Nicolas Maduro over the weekend. Markets remained concerned that the conflict between the US and Venezuela could spill over into other countries such as Mexico and Colombia. Read more…
