Pound Sterling Price News and Forecast: Rebounds as US Dollar retreats, but weekly losses persist

💡 DMK Insight

GBP’s 0.60% recovery today signals potential volatility ahead, especially with GBP/USD at 1.3604. The recent U-turn of the USD, which reversed Thursday’s losses, reflects a broader risk-on sentiment that could influence currency pairs. Traders should note that despite today’s gains, GBP/USD is still set to close the week down 0.56%. This mixed performance suggests a tug-of-war between bullish sentiment and underlying bearish pressure. If GBP/USD can hold above 1.3600, it might attract more buyers, but a drop below could trigger further selling. Look for key economic indicators next week, particularly from the UK, which could sway sentiment. A stronger-than-expected UK economic report could push GBP higher, while disappointing data might reinforce the current bearish trend. Keep an eye on the 1.3550 support level; a breach there could lead to a deeper correction.