Market sentiment improved following a drop in oil prices, as investors grew hopeful that the US and Iran may reach an agreement to restore shipping through the Strait of Hormuz. Such a development would reduce inflation risks and the likelihood of further rate hikes.
GBP/USD under pressure: Pound lags behind peers
We still holding our previous projection for the GBPUSD As we see over the Daily chart a possible triangle formation may hold market inside 1.3140-80 support and 1.3505-55 resistance Below 1.3140 more drops is likely SUPPORT RESISTANCE LEVEL1 1.3280 1.3505-55 LEVEL2 1.3160 1.3655 LEVEL3 1.3010 1.3780
British Pound: Pullback seen within 1.3400–1.3475 band against US Dollar – UOB
GBP/USD Price Forecast: Downward-sloping trendline near 1.3470 remains key barrier
Looking at the 4-hour chart, the pair settled above 1.3400, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). There was a move above the 61.8% Fib retracement level of the downward move from the 1.3555 swing high to the 1.3273 low.
Pound Sterling Price News and Forecast: GBP/USD slips as strong ISM data revives the US Dollar
The Pound to Canadian Dollar (GBP/CAD) exchange rate recovered to 1.8895 at Friday's close, reversing much of its early-week decline as Sterling strengthened following the Bank of England decision. Canadian trade and employment figures will provide the main tests for the GBP/CAD this week.
The Pound to Australian Dollar (GBP/AUD) exchange rate ended Friday near 1.9189 after a volatile final week of July left the pair little changed for the month. UK business surveys and Australian spending and trade figures will shape direction in the days ahead.
British Pound: Rally may stall near 1.3555 against US Dollar – UOB
Pound-Dollar could extend its recovery if US labour market data weakens further, although stronger ISM surveys may help steady the Greenback. The Pound to US Dollar (GBP/USD) exchange rate climbed to a 15-day high last week as investors scaled back Federal Reserve rate hike expectations following softer US economic data and the latest.
GBP/USD Price Forecast: At make or a break around 1.3500