- GBP/USD struggled for a firm direction and was seen consolidating the recent gains to YTD tops.
- The set-up favours bullish traders and supports prospects for an extension of the upward trajectory.
The GBP/USD pair lacked any firm directional bias and seesawed between tepid gains/minor losses, through the early North American session. The pair was last seen trading around mid-1.3300s, nearly unchanged for the day.
Given Friday's sustained move beyond the 1.3280-85 supply zone, the range-bound price action on the first day of a new week might still be categorized as a consolidation phase. Bullish technical indicators on 4-hourly/daily charts add credence to the constructive outlook.
This, in turn, favours bullish traders and supports prospects for additional gains amid sustained selling around the US dollar. However, RSI (14) on the mentioned chart remains on the verge of breaking into the overbought territory and warrant some caution for bullish traders.
That said, the pair seems poised to build on its recent strong upward trajectory and aim to reclaim the 1.3400 mark. Some follow-through buying will set the stage for a move towards the key 1.3500 psychological mark en-route December 2019 swing highs, around the 1.3515 level.
On the flip side, any meaningful dip will now be seen as an opportunity for bullish traders. This, in turn, should help limit the downside near the 1.3285-80 resistance breakpoint, which is closely followed by support near the 1.3270-65 region.
GBP/USD 1-hourly chart
-637344809202500915.png)
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds steadily as traders anticipate Australian Retail Sales, Fed’s decision
The Aussie Dollar registered solid gains against the US Dollar on Monday, edged up by 0.55% on an improvement in risk appetite, while the Greenback was crushed by Japanese authorities' intervention. As Tuesday’s Asian session begins, the AUD/USD trades at 0.6564.
EUR/USD finds support near 1.0720 after slow grind on Monday
EUR/USD jostled on Monday, settling near 1.0720 after churning in a tight but lopsided range as markets settled in for the wait US Fed outing. Investors broadly expect US rates to hold steady this week, but traders will look for an uptick in Fed guidance for when rate cuts could be coming.
Gold prices soften as traders gear up for Fed monetary policy decision
Gold price snaps two days of gains, yet it remains within familiar levels, with traders bracing for the US Fed's monetary policy decision on May 1. The XAU/USD retreats below the daily open and trades at $2,334, down 0.11%, courtesy of an improvement in risk appetite.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Relief wave on altcoins likely as BTC shows a $5,000 range
Bitcoin price has recorded lower highs over the past seven days, with a similar outlook witnessed among altcoins. Meanwhile, while altcoins display a rather disturbing outlook amid a broader market bleed, there could be some relief soon as fundamentals show.
Gearing up for a busy week: It typically doesn’t get any bigger than this
Attention this week is fixated on the Federal Reserve's policy announcement scheduled for Wednesday. While the US central bank is widely expected to remain on hold, traders will be eager to discern any signals from the Fed regarding the possibility of future interest-rate cuts.