Pound Sterling Price News and Forecast: GBP/USD at sell zone after big hike in asset purchasing program

GBP/USD outlook: Post-US election rally faces strong headwinds at 1.3200 zone; focus turns to EU-UK talks

Cable hit new two-month high (1.3198) in early Monday's trading, lifted by fresh risk mode after Democrat Joe Biden announced victory, but rally was so far short-lived, as traders collected profits after bulls probed above pivotal resistances at 1.3173/77 (Fibo 61.8% of 1.3482/1.2675/21 Oct peak) and faced headwinds at psychological 1.3200 barrier.
Last week's 1.8% advance (the biggest weekly rally since late Aug) points to positive sentiment and massive weekly candle underpins near-term action, but Friday's Doji, fading bullish momentum and overbought stochastic on daily chart, warn of deeper pullback.
The action is underpinned by thickening daily cloud, with cloud top (1.3178) expected to contain dips and keep in play dip-buying scenario for fresh attempt at key 1.3170/1.3200 resistance zone. Read more...

GBP/USD at sell zone after big hike in asset purchasing program

Last week the Bank Of England decided to increase its asset purchasing program by 100B Pounds from 745B to 845B as forecasted by analysts whilsts maintaining its Oficial Bank Rate close to zero (0.10%). This increase in the BoE's QE program weighs heavy on the Pound witht he GBP/USD closing on a very important zone. 

The Pound rallyed against the US Dollar on Sunday's open and now has rejected the 1.3170 level trigerring what could be the beginning of the next leg down in the Pound. Brexit negotiations still pending. Read more...

GBP/USD Forecast: Brexit updates, Bailey's speech awaited for fresh bullish impetus

The GBP/USD pair seesawed between tepid gains/minor losses and finally settled nearly unchanged, around mid-1.3100s on the last trading day of the week. The pair did witness some intraday selling, albeit sustained selling around the US dollar helped limit the downtick, rather attracted some dip-buying near the 1.3100 round-figure mark. The USD bulls seemed rather unimpressed by Friday's mostly upbeat US monthly jobs report, which showed that the unemployment rate fell to 6.9% from 7.9% previous. Meanwhile, the headline NFP came in to show that the US economy added more-than-anticipated, 638K new jobs in October and the previous month's reading was also revised higher to 672K as against 661K reported earlier.

Despite the supporting factor, the pair struggled to gain any meaningful traction amid persistent Brexit-related uncertainties. It is worth reporting that British and EU negotiators are yet to find a compromise on key sticking points – the so-called level-playing field, fisheries and state-aid rules. Talks are set to resume this week as both sides try to reach an agreement amid significant differences. Read more...