GBP/USD Price Forecast: Hold onto two-month high near 1.3590 amid risk-on mood

GBP/USD trades firmly near a fresh two-month high of 1.3565 amid upbeat market sentiment.
The hopes of a US-Iran permanent ceasefire have improved demand for riskier assets.
Investors await BoE Bailey’s remarks and the UK monthly GDP data.

Sagar Dua FXStreet

The GBP/USD pair trades flat around 1.3565 during the European trading session on Wednesday, but is close to its almost two-month high of 1.3590 posted the previous day. The Cable demonstrates strength as hopes of a permanent ceasefire between the United States (US) and Iran have improved the market sentiment.

During the press time, S&P 500 futures hold onto Tuesday’s gains near 6,970, reflecting an upbeat market mood. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades close to an over six-week low of 98.00.

US President Donald Trump has stated in an interview with ABC News, earlier in the day, that he doesn’t see any need to extend the two-week ceasefire while remaining confident that a permanent truce could be reached in the next two days. "I think you’re going to be watching an amazing two days ahead. I really do," Trump said.

Meanwhile, investors await comments from Bank of England (BoE) Governor Andrew Bailey’s in a panel discussion at the IMF later in the day, and the United Kingdom (UK) monthly Gross Domestic Product (GDP) data for February, which will be released on Thursday.

GBP/USD technical analysis

GBP/USD trades firmly near 1.356 as of writing, maintaining a constructive bullish bias while holding above the 20-period exponential moving average (EMA) at 1.3395 and the mid-range 50% Fibonacci retracement at 1.3516.

The rising Relative Strength Index (14) near 62 reinforces upward momentum, hinting that buyers retain control, although conditions are edging toward overbought territory.

On the downside, immediate support is located at the 50% Fibonacci retracement at 1.3516, with further protection at the 38.2% retracement around 1.3432. Looking up, initial resistance is defined by the 61.8% Fibonacci retracement at 1.3599; a clear break above this barrier would open the door to the 78.6% retracement at 1.3718, en route to the 1.3870 cycle high.

(The technical analysis of this story was written with the help of an AI tool.)

Economic Indicator

BoE's Governor Bailey speech

Andrew Bailey is the Bank of England's Governor. He took office on March 16th, 2020, at the end of Mark Carney's term. Bailey was serving as the Chief Executive of the Financial Conduct Authority before being designated. This British central banker was also the Deputy Governor of the Bank of England from April 2013 to July 2016 and the Chief Cashier of the Bank of England from January 2004 until April 2011.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.