GBP Trading Outlook
The Sterling (GBP) was the weakest currency in the market overnight with the out of fashion Pound being sold through 1.6000 and struggling to bounce with the EUR/USD rally in the US session. GBP/JPY is still supportive on dips and is helping stem the GBP/USD downside move. Looking ahead, UK December Retail Sales forecast at 0.2% vs. 0.0% previously.
The Sterling (GBP) tested the downside in sympathy with the Euro for a test of the 1.6000 major Psychological level. Support was found in the US session at 1.5980 and we closed back at the 1.6000 in mixed trade. Sellers looking for a fresh downtrend will be surely frustrated at the lack of progress the pair has been making especially in the last few sessions. Looking ahead, ECB Monthly Bulletin.
The Sterling (GBP) traded in a tight range with support found at 1.6030 before testing 1.6100 later in the US session. We closed roughly unchanged at 1.6060 and we have a mixed outlook with the BOE recently being quote dovish and with Fitch last night warning of the AAA rating we may be store for some USD strength. Looking ahead, EU December CPI forecast at 2.2 vs. 2.2 previously y/y.
Go to The Sterling (GBP) Archive