GBP/USD has preserved its bullish momentum early Thursday after having registered strong daily gains on Wednesday. The pair trades in positive territory above 1.2100 and remains on track to test the key resistance area that seems to have formed near 1.2150.

The broad-based selling pressure surrounding the US Dollar fueled GBP/USD rally mid-week. After FOMC Chairman Jerome Powell reaffirmed that smaller rate hikes could come as early as December, the CME Group FedWatch Tool’s probability of a 50 basis points (bps) rate hike at the next policy meeting jumped to 80% from 66%. Read more…

The GBP/USD pair builds on the previous day’s goodish rebound from a one-week low and gains traction for the second successive day on Thursday. The pair maintains its bid tone through the first half of the European session and hits a fresh weekly high, around the 1.2130-1.2135 area in the last hour.

The overnight dovish-sounding remarks by Fed Chair Jerome Powell, along with a further decline in the US Treasury bond yields, keep the US Dollar bulls on the defensive near a multi-month low. Apart from this, a generally positive tone around the equity markets is seen undermining the safe-haven buck and acting as a tailwind for the GBP/USD pair. Read more…

GBP/USD extends gains through the mid-1.21 area. Economists at Scotiabank expect the pair to test the 1.24/25 area in the next few weeks.

“Marginal new highs for the GBP through 1.2150 suggest more upward pressure on Cable in the short and medium term.” “GBP/USD is breaking out bullishly from a downward sloping channel (bull flag) that has developed over the past week, implying the resumption of short-term trend gains, while sustained strength through 1.2060 on the week (50% retracement of the 2022 decline) pave the way for the pair to push on to the 1.24/1.25 zone (61.8% Fib at 1.2458) in the next few weeks.” Read more…

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