The Pound Sterling (GBP) has been experiencing a challenging period in the foreign exchange market, with the GBP/USD pair displaying weakness as it drops below the significant level of 1.2700. Traders and investors are concerned due to the recent confirmation of a bearish harami candlestick pattern, which is adding pressure on the Pound. In this article, we will explore the latest updates and predictions for the GBP/USD pair, examining the factors contributing to the decline of the Pound and speculating on its future trajectory.
GBP/USD Rate Analysis: Confirmation of Bearish Harami as Pound Declines below 1.2700
The Pound Sterling has seen a sharp decline below the 1.2700 mark as risk aversion impacts most G7 currencies, except for safe-haven counterparts like the US Dollar. Turmoil in Europe has led to the Euro plummeting against the Swiss Franc, while the GBP/USD pair has dropped by 0.62% and is currently trading at 1.2683.
Pound Sterling Weakens against US Dollar on Fed’s Hawkish Outlook
The Pound Sterling has further weakened against the US Dollar, reaching 1.2660 in the American trading session as the USD gains strength. The US Dollar Index, which measures the Dollar’s value against major currencies, continues to rise to 105.75. The hawkish stance of the Federal Reserve on interest rates has outweighed the impact of the soft US Consumer Price Index (CPI) and Producer Price Index (PPI) reports for May.
GBP/USD Rate Analysis: Bulls Need to Break above 1.2800 for Control
The GBP/USD pair is trading with a negative bias for the second consecutive day, but it is managing to stay above the previous day’s low. Current prices are hovering around the mid-1.2700s, showing signs of potential modest gains for the week amid subdued US Dollar movements.
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