Pound Sterling Price News: GBP/USD faces resistance near 1.3700
|GBP/USD faces resistance near 1.3700 as USD ticks higher ahead of Fed rate decision
The GBP/USD pair struggles to find acceptance or build on its gains beyond the 1.3700 mark for the second consecutive day and edges lower during the early part of the European session on Tuesday. The downside, however, remains cushioned, with spot prices holding above mid-1.3600s. Moreover, the lack of follow-through selling warrants some caution before positioning for any meaningful corrective slide from over a four-month peak, touched on Monday.
The US Dollar (USD) recovers slightly from its lowest level since September 2025 set the previous day, and turns out to be a key factor acting as a headwind for the GBP/USD pair. The USD uptick could be attributed to some repositioning trade as bearish traders opt to lighten their positioning heading into the key central bank event risk. The US Federal Reserve (Fed) is scheduled to announce its policy decision at the end of a two-day meeting on Wednesday and is widely expected to leave rates unchanged. Read more...
GBP/USD gains steam above four‑month high near 1.3650
GBP/USD is strengthening above the four‑month high of 1.3650, its highest level since September 17, after briefly rising above 1.3712 in the previous session. This extends a four‑day rebound from the 200‑day simple moving average (SMA) near 1.3400 that began last week.
The positive outlook remains intact with the pair holding well above the long‑term ascending trendline, while the MACD is increasing above both the zero level and its red signal line. Meanwhile, the price continues to trade outside the upper Bollinger band, and the bands are widening – a signal that favours continued high momentum rather than an immediate reversal. That said, the RSI is flatlining around the 70 overbought threshold, suggesting that a sideways consolidation cannot be ruled out. Read more...
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