GBP/USD edges higher to near 1.3430 early European session

GBP/USD Price Forecast: Immediate resistance level emerges above 1.3450

The GBP/USD pair attracts some buyers to around 1.3430 during the early European trading hours on Monday. The Greenback weakens against the Pound Sterling (GBP) after Federal Reserve (Fed) Chair Jerome Powell said US President Donald Trump threatened him with a criminal indictment, raising concerns over the central bank’s independence.

The US Justice Department served the agency with subpoenas and threatened a criminal indictment over testimony he gave to a Senate committee about renovations to Fed buildings. Powell called the probe “unprecedented” and said he believed it was opened due to him drawing Trump’s ire over refusing to cut interest rates despite repeated public pressure from the president. Read more…

GBP/USD rebounds from three-week low, eyes mid-1.3400s as Fed concerns weigh on USD

The GBP/USD pair attracts some buyers near a technically significant 200-day Simple Moving Average (SMA) and recovers slightly from a nearly three-week low, touched during the Asian session on Monday. Spot prices, for now, seem to have snapped a four-day losing streak and currently trade around the 1.3435 region, up 0.20% for the day.

Despite the global flight to safety and reduced bets for more aggressive policy easing by the US Federal Reserve (Fed), renewed concerns about the US central bank’s independence weigh on the US Dollar (USD) and benefit the GBP/USD pair. In fact, Fed Chair Jerome Powell said in a statement that the Department of Justice is threatening a criminal indictment against him. Powell added that the threat of criminal charges is a consequence of the Fed on our best assessment of what will serve the public, rather than following the preference of the President. Read more…

GBP/USD Weekly Forecast: Can Pound Sterling withstand renewed US Dollar demand?

The Pound Sterling (GBP) witnessed a steep correction against the US Dollar (USD), sending GBP/USD down from four-month highs of 1.3568 to test the weekly low near 1.3400. An impressive USD recovery and simmering geopolitical tensions globally remained major headwinds to GBP/USD’s uptrend, fueling a notable retracement during the past week.

Safe-haven demand for the Greenback surged at the start of the week as markets took into account the United States’ (US) military aggression in Venezuela and the capture of the former President Nicolas Maduro over the weekend. Markets remained concerned that the US-Venezuela conflict could extend into other countries such as Mexico and Colombia. Read more…