Last: 
Current GBP/USD Price - The GBP/USD currency pair continues to show negative sentiment for two consecutive days on Tuesday, further declining from the mid-September highs, around the 1.2425-1.2430 range.
The spot price dropped to a two-day low during the Asian session, around the 1.2335-1.2330 zone, reflecting a decline of less than 0.10% for the day, although there was no sustained selling pressure.
The strengthening of the U.S. Dollar (USD) after an overnight drop of nearly eight weeks is the main factor putting pressure on the GBP/USD pair. Despite hopes that the Federal Reserve (Fed) will soon raise interest rates, less dovish statements from FOMC members caused a rise in U.S. Treasury bond yields on Monday. Additionally, a slight decline in global risk sentiment, evident in weaker stock markets, supported the USD as a safe-haven asset.
The British Pound (GBP), on the other hand, is weighed down by the Bank of England's (BoE) gloomy outlook, which indicates that the UK economy is at risk of recession next year. This, combined with the failure of the GBP/USD pair to approach the significant 200-day Simple Moving Average (SMA) the previous day, triggered some selling action against the pair, resulting in mild selling pressure.
However, the negative impact appears limited as traders await new guidance regarding the Fed's future interest rate policy before making further decisions.
Therefore, attention will remain focused on influential FOMC members' speeches, including Fed Chair Jerome Powell, who will speak on Wednesday and Thursday. Meanwhile, the potential for further declines in U.S. Treasury bond yields could limit additional increases and help mitigate the GBP/USD pair's decline.
With no significant economic data expected to impact the market from either the UK or the U.S., current fundamental factors suggest we should wait for clearer signs before confirming whether the spot price has reached its highs.
Read Also:
Warning!
This analysis is based on insights from trusted fundamental and technical sources and does not constitute advice or an invitation to act. Always remember that this content aims to enrich readers' information. Conduct your own research regarding other forex information before using it as a reference for your trading.
Stay updated with the latest news and articles from GIC Indonesia daily on Google News to learn about the latest updates in forex and crypto. Trade at GICTrade using an ECN account to enjoy trading with low spreads starting from zero!
