Sellers want to maintain control as the pound sterling remains below crucial levels.
GBPUSD finished the previous week’s last two trading days in the red. Although the duo staged a slight recovery early Monday, it failed to gain traction.
The risk-averse market environment ahead of the weekend prompted GBPUSD to remain under pressure. Meanwhile, the University of Michigan’s Consumer Sentiment Survey, which reported a large increase in the one-year inflation forecast component, gave the US Dollar (USD) an extra lift. Following this data, the likelihood of the Federal Reserve (Fed) hiking interest rates again in December fell to 67% from over 75% earlier in the week.
GBPUSD Technical Outlook
GBPUSD clings to small intraday advances over the mid-1.2100s, although bullish confidence is lacking.
The GBPUSD pair receives new bids on the opening day of a new week and maintains intraday gains into the early European session. Spot prices are now trading in the 1.2175-1.2180 range, up 0.30% on the day, and appear to have broken a two-day losing run to a one-week low reached on Friday.
The US Dollar (USD) begins the new week on a lower note as the Federal Reserve’s (Fed) future rate-hike path remains unknown, and this proves to be a crucial element acting as a tailwind for the GBPUSD pair. Several Fed members’ recent dovish statements hinted that the November, the US Federal Reserve will maintain interest rates steady for the second time in a row.
