|premium|

GBP/USD Forecast: Brexit hopes keep underpinning sterling

GBP/USD Current price: 1.3351

  • Brexit talks continue without news on progress, optimism persists.
  • BOE’s Haskel said that policymakers “have plenty” to do in terms of policy firepower.
  • GBP/USD retains its bullish stance in the near-term, eyes on 1.3410.

The GBP/USD pair has advanced for a third consecutive day as broad optimism, and Brexit hopes continue to underpin the sterling, although it´s ending the day with modest gains. Trade talks between the EU and the UK extended into this week, and while weekend news suggested progress, nothing has been confirmed yet.

BOE’s Jonathan Haskel was on the wires this Tuesday and referred to Brexit and the coronavirus pandemic, indicating that both could affect the central bank’s outlook for 2021. He added that policymakers “have plenty” to do in terms of policy firepower. The UK won’t publish macroeconomic data this Wednesday.

GBP/USD short-term technical outlook

The GBP/USD pair is biased higher, but the bullish momentum is limited by a cautious stance ahead of Brexit clarity. The 4-hour chart shows that the pair has bounced from a bullish 20 SMA, which led the way higher ever since the week started. The larger moving averages are accelerating their advance below the shorter one. Technical indicators remain within positive levels but lack strength enough to confirm an advance coming.

Support levels: 1.3310 1.3265 1.3210  

Resistance levels: 1.3365 1.3410 1.3460

View Live Chart for the GBP/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to PremiumSign In

Author

Valeria Bednarik

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

More from Valeria Bednarik
Share:

Editor's Picks

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.
 

GBP/USD tilts bullish as markets barrel toward mid-week NFP print

GBP/USD is holding a broader bullish structure on the daily chart, with price trading well above the 50 Exponential Moving Average at 1.3507 and the 200 EMA at 1.3310, confirming the intermediate uptrend that has been in place since the November 2025 low near 1.2300. 

Gold pushes back above $5,000

The daily chart shows spot Gold in a parabolic uptrend that accelerated sharply from the $4,600 area in late January, printing a record high at $5,598.25 before a violent reversal erased nearly $1,000 in value during the final days of the month. 

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.