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GBP/USD Price Forecast: Retreats from one-week top as USD firms; 1.3300 holds the key

  • GBP/USD meets with a fresh supply and snaps a three-day winning streak to a one-week high.
  • The US-Iran uncertainty and elevated Fed rate hike expectations help revive the USD demand.
  • The mixed technical setup warrants some caution before placing aggressive directional bets.

The GBP/USD pair attracts some sellers during the Asians session on Tuesday and reverses a part of the previous day's strong move up to a one-week top. Spot prices, for now, seem to have snapped a three-day winning streak and currently trade around the 1.3235-1.3230 region, down nearly 0.20% for the day.

The US Dollar (USD) regains some positive traction amid mixed signals on US-Iran talks and firming expectations that the US Federal Reserve (Fed) will hike interest rates in 2026. Furthermore, the UK political uncertainty ahead of a leadership contest is seen as undermining the British Pound (GBP) and exerting some downward pressure on the GBP/USD pair.

From a technical perspective, the recent repeated failures near the 200-period Simple Moving Average (SMA) on the 4-hour chart favor bearish traders. Moreover, spot prices retain a negative bias below the 1.3300 mark, though momentum indicators suggest that upside attempts could persist while the broader structure is still constrained by the overhead supply zone.

In fact, the Relative Strength Index (RSI) hovers near 54 while the Moving Average Convergence Divergence (MACD) histogram remains modestly positive. Hence, any further decline is more likely to find a decent support near the 1.3200 mark, below which the GBP/USD pair could aim to retest the year-to-date low, around the 1.3140 region, and decline further.

On the topside, initial resistance is located near the 1.3300 round figure, which is followed by the 200-period SMA at 1.3366. A sustained strength above this barrier would start to ease the broader bearish bias and open the way for a more convincing recovery phase, though a failure would leave the GBP/USD pair vulnerable to resume its downtrend.

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

GBP/USD 4-hour chart

Chart Analysis GBP/USD

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Euro.

USDEURGBPJPYCADAUDNZDCHF
USD0.28%0.19%0.16%0.16%0.21%-0.02%0.24%
EUR-0.28%-0.09%-0.15%-0.16%-0.08%-0.31%-0.05%
GBP-0.19%0.09%-0.04%-0.08%0.02%-0.21%0.03%
JPY-0.16%0.15%0.04%0.00%0.05%-0.16%0.07%
CAD-0.16%0.16%0.08%-0.00%0.03%-0.17%0.08%
AUD-0.21%0.08%-0.02%-0.05%-0.03%-0.20%0.07%
NZD0.02%0.31%0.21%0.16%0.17%0.20%0.23%
CHF-0.24%0.05%-0.03%-0.07%-0.08%-0.07%-0.23%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Haresh Menghani

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

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