GBP/USD eases from tops, remains capped below 1.39 handle

Haresh Menghani FXStreet

• Once again faces rejection ahead of the 1.3900 handle.
• Brexit concerns keep a lid on the post-NFP up-move.
• A goodish pickup in the US bond yields prompts some selling.

The GBP/USD pair trimmed some of its early gains and quickly retreated around 20-25 pips from session tops, touched in the past hour.

The pair gained some positive traction at the start of a new trading week and jumped back closer to the post-NFP swing highs in the last hour. A follow-through US Dollar weakness, led by Friday's sluggish wage growth data, was seen as one of the key factors driving the pair higher.

The momentum, however, lacked any strong conviction and once again stalled ahead of the 1.3900 handle. Prolonged concerns around Brexit talks continue to dent sentiment surrounding the British Pound, with bulls now struggling to build on the early up-move.

Meanwhile, a goodish pickup in the US Treasury bond yields seems to have further collaborated towards keeping a lid on the pair's bullish momentum and prompt some selling at higher levels.

It would now be interesting to see if bulls are able to maintain their dominant position or the pair's rejection slide from the 1.3900 neighborhood aggravates the long-unwinding pressure amid empty UK/USD economic docket.

Technical levels to watch

Any meaningful retracement is likely to find support near the 1.3800 handle and is followed by a strong horizontal support near the 1.3765-60 region. On the upside, the 1.3890-1.3900 area might continue to act as an immediate resistance, above which the pair is likely to aim towards testing a short-term descending trend-line hurdle, currently near the 1.3925-30 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

USD/JPY steadies below 160.50 as BoJ's Uchida speaks on outlook

USD/JPY holds its bounce below 160.50 in Europe trading on Tuesday, following the release of the Bank of Japan's monetary policy decision. The BoJ hiked the key rate by 25 bps to 1% as widely, providing little to no impetus to the Japanese Yen. BoJ Deputy Governor Uchida's press conference is doing little to lift the Japanese Yen.

AUD/USD keeps losses near 0.7050 after RBA's expected pause

AUD/ISD is holding moderate losses near 0.7050 in the European session on Tuesday. Traders are assessing the Reserve Bank of Australia's (RBA) expected interest rate hike pause decision and the Governor Bullock's remarks, with the Australian Dollar holding lower ground.

Gold holds gains above $4,300 amid cautious markets

Gold maintains a mildly positive tone, holding gains after rallying about 6.5% over the last few days. The precious metal's recovery, however, has lost steam after crossing the $4,300 line and remains practically flat as the initial enthusiasm about the US-Iran peace deal faded, with investors awaiting details of the agreement and monetary policy decisions by major central banks.

Solana's rebound gains momentum as ETF inflows return

Solana (SOL) steadies at $73 after posting three consecutive green candlesticks since the weekend. The recent recovery is supported by institutional demand, with spot Exchange Traded Funds recording net inflows of $2.81 million on Monday.

Kevin Warsh opens first Fed meeting June 16 with rate hold expected

Kevin Warsh was confirmed by the Senate in a 54-45 vote and sworn in as Federal Reserve Chair on 22 May 2026. The ceremony took place at the White House, with Supreme Court Justice Clarence Thomas administering the oath. The FOMC meeting on 16 and 17 June is his first as chair. The June meeting is also a quarterly projection meeting.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.