Trending Articles- Markets in 2026: Will gold, Bitcoin, and the U.S. dollar make history again? — These are how leading institutions think
- Trump says Venezuela's Maduro deposed, captured after US strikes
- Bitcoin Price Surges To $90,000. U.S. Arrests Venezuela's President, Triggers Bull Frenzy
- After Upheaval in the World’s Largest Oil Reserve Holder, Who Will Emerge as the Biggest Winner in Venezuela’s Oil Market?
- U.S. to freeze and take control of Venezuela's Bitcoin holdings after Maduro capture
- Ethereum Price Forecast: Accumulation addresses post record inflows in December despite high selling pressure
■ GBP/USD slid nine-tenths of one percent on Tuesday.
■ Pound Sterling continues to soften on social unrest, BoE cuts.
■ Markets have pivoted back into Fed rate cut bets.
GBP/USD backslid nearly a full percent on Tuesday as the Pound Sterling continues to deflate against the broader FX market. The US Dollar found a soft patch as markets pivot back into a risk-on stance fueled by ongoing hopes for a September rate cut from the Federal Reserve (Fed), but a rapidly-depreciating GBP sent Cable into fresh five-week lows just south of 1.2700.
Forex Today: Markets’ attention remains on data and rate cut bets
The economic calendar is notably thin for both currencies on Wednesday, leaving markets to whittle away the hours until something structurally changes.
The Pound Sterling is seeing a steady decline after the BoE trimmed interest rates to 5.0% from 5.25% recently, sparking outflows from broad-market positioning that was previously heavily-weighted in favor of the GBP. With social unrest throughout the UK over the weekend and into the new week, investors are leery about the economic outlook for the kingdom, investors are paring back bullish bets on the Pound Sterling and waiting for signs of stabilization and a better read on how many more time the BoE will cut in 2024.
Rate markets have fully priced in a September rate cut, and according to the CME’s FedWatch Tool, investors see two-to-one odds of a double cut for 50 basis points when the Federal Open Market Committee (FOMC) delivers its rate call on September 18. At the current cut, rate markets see zero chance of the Fed holding rates steady anymore in 2024, with a total of four quarter-point cuts expected by the end of the year.
GBP/USD technical outlook
Tuesday’s -0.9% drop on Cable has dragged the pair within touch range of the 200-day Exponential Moving Average (EMA) at 1.2646 for the first time since vaulting over the long-run moving average in May. GBP/USD has shed nearly 3% since declining from a 12-month peak of 1.3045 in July.
The few remaining Pound Sterling bulls will be hoping for a technical recovery off the back of a rising pattern of higher lows on daily candlesticks, but an extended drop into 1.2600 will set GBP/USD price action in a path of steady declines to 2024’s lows of 1.2300.
GBP/USD daily chart
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
