GBPUSD continues its losing streak
Updated
Brian greeting everyone!
This week, the GBP/USD pair is expected to trade within a narrow range and consolidate its recent decline to the lowest level since late March. The price is currently trading around the 1.2200 level and seems susceptible to further extending the established downtrend from the 1.3140 area.
The US Dollar (USD) remains near its highest level in over six months and continues to be well-supported by the hawkish stance of the Federal Reserve (Fed), making it a key factor driving the GBP/USD pair lower. The Fed emphasizes the need to maintain higher interest rates for a longer period to push inflation back towards the 2% target and market expectations of at least one more 25 bps rate hike by the end of this year. This has somewhat exerted pressure on the price of GBP/USD, causing the pair to continue its downward trajectory, which is not entirely surprising.
This week, the GBP/USD pair is expected to trade within a narrow range and consolidate its recent decline to the lowest level since late March. The price is currently trading around the 1.2200 level and seems susceptible to further extending the established downtrend from the 1.3140 area.
The US Dollar (USD) remains near its highest level in over six months and continues to be well-supported by the hawkish stance of the Federal Reserve (Fed), making it a key factor driving the GBP/USD pair lower. The Fed emphasizes the need to maintain higher interest rates for a longer period to push inflation back towards the 2% target and market expectations of at least one more 25 bps rate hike by the end of this year. This has somewhat exerted pressure on the price of GBP/USD, causing the pair to continue its downward trajectory, which is not entirely surprising.
Note
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Note
Upside risks to a slowdown in the UK economy have forced investors to dump the Pound Sterling.
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