Pound Sterling Price News and Forecast: GBP/USD looking to the upside
by FXStreet TeamGBP/USD analysis: Consolidated at 1.2180
At the end of last week, the GBP/USD exchange rate consolidated at 1.2180. During Monday morning, the rate maintained its consolidation.
Note that the currency pair is pressured by the 55-, 100– and 200-hour SMAs in the 1.2200 area. Thus, some downside potential could prevail in the market. It is likely that the pair could target the 1.2100 level.
However, if the exchange rate fails to decline below 1.2160, it is likely that the British Pound could consolidate against the US Dollar within the following trading session.
GBP/USD looking to the upside - elliott wave analysis
GBP/USD completed a five-wave recovery from March lows, and started trading sideways. We labelled a W-X-Y complex correction from 1.265 high, which based on latest developments looks completed at the 1.207 level. If that is the case, then we may see a five-wave rally into a higher degree wave C in the next couple of days or weeks. Also, we would like to see the upper channel line broken, which would confirm a completed correction, and further upside.
Any decling within recovery can be part of a correction within a wave C. At the moment we see sub-wave 2 in play, with support at 1.216/1.213 zone.
GBP/USD clings to modest gains, bulls await a move beyond 1.2200 mark
The GBP/USD pair edged higher through the early North American session and was last seen trading near the top end of its daily trading range, just below the 1.2200 mark.
The pair managed to regain some positive traction on the first day of a new trading week and for now, seems to have snapped three consecutive days of losing streak. The uptick lacked any fresh fundamental catalyst and was sponsored by a modest US dollar pullback.
The prevalent risk-on mood undermined the greenback's safe-haven status and turned out to be one of the key factors that extended some support to the GBP/USD pair. However, concerns about worsening US-China relations might help limit any meaningful USD downfall.