Pound Sterling Price News and Forecast: GBP/USD back down to the week’s opening bids just north of 1.2800

GBP/USD falls back from brief peaks as Fed Powell appearance looms

GBP/USD briefly tested a fresh four-week high on Monday, crossing above 1.2840 before broad-market flows dragged Cable back down to the week’s opening bids just north of 1.2800. UK data remains thin this week, leaving traders grappling with peaking rate cut hopes clashing with an overly-cautious Federal Reserve (Fed) that insists on waiting for further signs that US inflation will ease towards the Fed’s 2% annual inflation target.

Fed Chairman Jerome Powell will make the first of two appearances this week when he delivers the Fed’s latest semiannual Monetary Policy Report to the US Senate Banking Committee. Fed Chair Powell will follow up with a repeat performance when testifying before the Congressional House Committee on Financial Services on Wednesday. Read more…

GBP/USD Price Analysis: Climbs to 4-week high, buyers target 1.2900

The Pound Sterling begins the week on a higher note and posted gains of more than 0.20%, as the Greenback continued to edge lower, amid increasing expectations that the Federal Reserve could cut borrowing costs in September. A busy week in the US docket will feature Fed Chair Jerome Powell’s speeches at the US Congress, while inflation data on Wednesday will lay the path for the upcoming Fed decision. The GBP/USD trades at 1.2844 at around four-week highs.

From a technical perspective, the GBP/USD pair has made a significant move. It has broken a downslope resistance trendline that dates to the August 2023 highs. This trendline has now become a support level, following the pair’s clearance of the 1.2750 psychological level. Read more…