Pound Sterling Price News and Forecast: GBP holds above 1.3350 with the 200-day SMA capping gains

GBP/USD Price Forecast: Pound holds above 1.3350 with the 200-day SMA capping gains

The British Pound (GBP) appreciates against the US Dollar (USD)  on Tuesday to trim previous losses and return to the 1.3375 area, aiming to retest resistance at the key 200-day Simple Moving Average (SMA). This is a popular indicator, which lies a few pips below 1.3400 and has been capping Pound’s recovery over the last two weeks. 

Markets are hesitant on Tuesday with the US Dollar a tad lower as investors await the release of US Consumer Prices Index (CPI) figures, which are expected to show a slight moderation in prices, yet at levels well above the Federal Reserve’s (Fed) 2% rate. After that Fed Chairman Kevin Warsh will face the first of the two hearings before the US Congress scheduled for this week. Read more...

British Pound drifts higher to near 1.3350 ahead US CPI data

The GBP/USD pair gains ground to around 1.3355 during the early European trading hours on Tuesday. The British Pound (GBP) strengthens against the US Dollar (USD) as traders have ramped up bets that the Bank of England (BoE) will be forced to raise interest rates this year to keep inflation under control. 

Renewed Middle East tensions have caused oil prices to spike again after falling back to pre-conflict levels over the last month. BoE Chief Economist Huw Pill signaled rates will likely rise this year to prevent inflation from becoming entrenched. Read more...