GBP/USD Price Forecast: Dives to its lowest level since November 2023 amid relentless USD buying

The GBP/USD pair remains under heavy selling pressure for the fifth straight day and dives to its lowest level since November 2023, around the 1.2125 region during the Asian session on Monday. Moreover, the fundamental backdrop seems tilted in favor of bearish traders, though slightly oversold conditions on the daily chart warrant some caution before positioning for further losses.

Investors remain concerned about the risk of stagflation in the UK. This, along with the anxiety about the UK’s fiscal health, turn out to be key factors contributing to the British Pound’s (GBP) relative underperformance. Apart from this, the underlying strong bullish sentiment surrounding the US Dollar (USD), bolstered by firming expectations that the Federal Reserve (Fed) will pause its rate-cutting cycle, validates the negative outlook for the GBP/USD pair. Read more…

GBP/USD languishes near its lowest level since November 2023, around 1.2200 mark

The GBP/USD pair enters a bearish consolidation phase at the start of a new week and languishes near its lowest level since November 2023 touched on Friday, around the 1.2200 mark during the Asian session. Moreover, the fundamental backdrop seems tilted in favor of bearish traders and suggests that the path of least resistance for spot prices remains to the downside. 

The British Pound (GBP) continues with its relative underperformance in the wake of concerns over stagflation in the UK amid stubborn inflation and stalling growth. Furthermore, the recent rise in the UK government bond yields has raised anxiety about the UK’s fiscal health, which is seen as another factor undermining the GBP and validates the negative outlook for the GBP/USD pair amid a bullish US Dollar (USD). Read more…