Goldman Sachs analysts have expressed skepticism about the GBP/USD’s ability to break through the 1.23 level without significant movement in the EUR/USD. Positive economic data from Europe has influenced trader expectations and added complexity to the currency dynamics. Goldman Sachs advises caution in anticipating significant movements in the GBP/USD without corresponding shifts in the EUR/USD.
The GBP/USD pair has been in a downtrend since March, with fundamentals favoring US dollar strength. A break below 1.2500 has led to a decline to 1.2316. With light newsflow and negative market sentiment, further selling is likely towards 1.2200 and eventually 1.2100. Upcoming data releases like US GDP, PCE, and S&P Global PMIs will be watched for potential drivers.
