Select Language

GBP/USD extends its upside above 1.2700, investors await fresh catalysts

Breaking news

GBP/USD extends its upside above 1.2700, investors await fresh catalysts

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2024.05.21 08:17
GBP/USD extends its upside above 1.2700, investors await fresh catalysts

update 2024.05.21 08:17

  • GBP/USD holds positive ground around 1.2710 in Tuesday's early Asian session. 
  • Fed officials remain cautious about the timing of rate cuts, emphasizing the need to hold rates higher for longer. 
  • The UK CPI inflation is expected to ease to 2.1% YoY in April from 3.2% prior. 

The GBP/USD pair extends the rally near 1.2710 on Tuesday during the early Asian session. Investors await fresh catalysts, with different Federal Reserve (Fed) speakers set to speak later in the day. On Wednesday, the UK Consumer Price Index (CPI) inflation data and FOMC Minutes will be closely watched. 

The Greenback trades steady on Tuesday amid the absence of top-tier economic data releases from the US and the UK. The Fed officials remain cautious about the timing of its easing cycle and emphasize the need to hold rates higher for longer to gain confidence that inflation is on course toward the target. The upcoming FOMC minutes on Wednesday will take center stage as they might offer some clues about the future interest rate path. 

On Monday, Fed Vice Chair Michael Barr said that the central bank "will need to allow our restrictive policy some further time to continue to do its work."  Meanwhile, Fed policymaker Philip Jefferson, another permanent voting member of the Fed's rate-setting committee, said inflation was still easing, although nowhere near as quickly as he expected. The Fed is widely expected to leave rates unchanged when they meet again in June. Financial markets see a 76% chance of rate cuts by 25 basis points (bps) in September and two cuts by the end of the year, according to the CME FedWatch Tool. The wait-and-see mode of the US Fed is likely to lift the US dollar (USD) and might cap the pair's upside in the near term. 

On the other hand, an interest rate cut from the Bank of England (BoE) at its June meeting has not been ruled out. The BoE governor Andrew Bailey noted that the bank will be led by data such as UK wage growth and consumer price inflation. The UK CPI inflation is expected to ease to 2.1% YoY in April from 3.2% in March, while the core CPI inflation is estimated to drop to 3.6% YoY in April from 4.2% in the previous reading. The softer reading might trigger the expectation of rate cuts and weigh on the Pound Sterling (GBP). 


Today last price 1.2709
Today Daily Change 0.0008
Today Daily Change % 0.06
Today daily open 1.2701
Daily SMA20 1.2538
Daily SMA50 1.2588
Daily SMA100 1.2632
Daily SMA200 1.2541
Previous Daily High 1.2712
Previous Daily Low 1.2645
Previous Weekly High 1.2712
Previous Weekly Low 1.2509
Previous Monthly High 1.2709
Previous Monthly Low 1.23
Daily Fibonacci 38.2% 1.2686
Daily Fibonacci 61.8% 1.2671
Daily Pivot Point S1 1.266
Daily Pivot Point S2 1.2619
Daily Pivot Point S3 1.2593
Daily Pivot Point R1 1.2727
Daily Pivot Point R2 1.2753
Daily Pivot Point R3 1.2794





 : 2024.05.21


Last updated

 : 2024.05.21

Related articles

Show more


Financial media


FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Canadian Dollar in a holding pattern as markets await meaningful data

The Canadian Dollar (CAD) is trading tightly on Monday, with gains and losses mixed across the board and within a quarter of a percent against most of its major currency peers.
update2024.06.18 01:49

US Dollar rally tempered to start week, gains expected to continue

On Monday, the US Dollar Index (DXY) experienced some pullback but maintained overall strength.
update2024.06.18 01:49

USD stands strong amid increasing net long positions - Rabobank

The US Dollar (USD) and the Pound Sterling (GBP) gain momentum while the Euro (EUR) and the Japanese Yen (JPY) lose track, strategists at Rabobank note.
update2024.06.18 00:51

Japanese Yen weakens against USD amid tepid real wages, imported inflation

The Japanese Yen (JPY) trades lower by about a third of a percent against the US Dollar (USD), in the 157.80s on Monday, as the outlook for interest rates in the US remains elevated despite lower inflation and economic sentiment readings.
update2024.06.18 00:51

EUR keeps afloat amid ECB comments - Scotiabank

European Central Bank (ECB) policymakers indicated that the French situation is "contained", allowing the Euro (EUR) to float above 1.07, Scotiabank's Chief FX Strategist Shaun Osborne notes.
update2024.06.18 00:49

USD wins when carry meets politics - TDS

Global carry trade withers away leaving markets cling to the US Dollar as the best hedge to rising risks, TDS strategists note.
update2024.06.18 00:25

GBP/USD Price Analysis: Creeps lower, remains below 1.2700

The Pound Sterling extended its losses versus the Greenback on Monday, losses of some 0.06% as traders remain risk averse due to European political uncertainty.
update2024.06.18 00:10

US core services inflation remains above 5% for 24th consecutive month - NBC

Global financial markets cheered last week's weaker-than-expected US CPI data for May, with both the headline (+0.0%) and core (+0.2%) measures coming in a tick below consensus expectations, National Bank of Canada (NBC) strategists Stéfane Marion and Jocelyn Paquet note.
update2024.06.18 00:09

Post-OPEC+ oil price recovery fades away - TDS

Crude Oil's recovery could start to fade as upside momentum eases, TDS Senior Commodity Strategist Ryan McKay notes.
update2024.06.17 23:55

Precious metals start the week trading weaker - TDS

Gold (XAU/USD) faces some Commodity Trading Advisor (CTA) selling amid the back-and-forth price action, but the latest Federal Reserve (Fed) meeting generated some demand for the Yellow Metal, Ryan McKay, Senior Commodity Strategist, notes.
update2024.06.17 23:40


All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree