The pound sterling against the USD looks vulnerable above the immediate support level at 1.2420 in early European trading. The cable is struggling to maintain the level as investors await a speech from the Bank of England (BoE) Governor Andrew Bailey. We summarize this forex news information about the pound sterling based on technical analysis from the FxStreet.com website. The GBP/USD currency pair is facing pressure above the key support level at 1.2420. This support is an important level that serves as the last line of defense before a possible further decline in the currency pair. Investors are currently awaiting a speech by the Bank of England Governor Andrew Bailey. The speech could provide clues about the direction of the BoE's monetary policy and potential actions to be taken to address current economic challenges. S&P 500 futures held on to half of their gains for the Asian session, reflecting the market conditions that are starting to be positive. DXY or US Dollar Index is facing a barricade located above 103.30 as the upside is limited by further delays in US debt issues, while the downside is supported by positive or hawkish comments from the Fed. DXY is predicted to remain anxious ahead of the S&P PMI figures in early May. The PMI for Manufacturing was seen to have weakened to 50.0 from the previous data at 50.2. Meanwhile, the services PMI is predicted to be stable at 53.6. The release of the second consecutive Manufacturing PMI data above 50.0 will indicate that the Manufacturing sector is exiting its contraction phase. In front of Sterling (GBP/USD), investors are awaiting the release of UK CPI data. According to the preliminary report, UK headline CPI is seen to have fallen to 8.3%, this figure has fallen further compared to the previous data that was announced, which was 10.1% per year. Monthly headline CPI grew steadily at 0.8%. Core CPI excluding the impact of oil and food prices is predicted to remain stable at 6.2%. Going forward, the talks by Andrew Bailey from the BoE will continue. Bailey's talks are expected to provide future direction for interest rates for monetary policy which will be scheduled in June.


Also Read :

GBP/USD Manages to Break 1.2100 Early This Week

GBP/USD Rises to 1.2310 Amid Brexit Optimism, Dovish Fed

 

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This analysis is based on fundamental and technical views from trusted sources, not advice or invitation. Always remember that this content is intended to enrich the reader's information. Always use independent research first regarding other forex information to be used as a reference in your trading.
 
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