Pound Sterling Price News and Forecast: GBP/USD could face strong resistance at 1.2700

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GBP/USD Forecast: Pound Sterling could face strong resistance at 1.2700

GBP/USD holds its ground early Monday after closing the previous week virtually unchanged. The technical outlook points to a bullish tilt in the short term.

The selling pressure surrounding the US Dollar (USD) at the beginning of the week helps GBP/USD edge higher. On Friday, the data from the US showed that the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's (Fed) preferred gauge of inflation, rose 2.6% on a yearly basis in May. On a monthly basis, the PCE Price Index remained unchanged. These figures came in line with analysts' estimates and made it difficult for the USD to stay resilient against its rivals. Read more...

GBP/USD Price Analysis: The potential support level is located near 1.2600

The GBP/USD pair attracts some buyers around 1.2680 during the early European session on Monday. The decline of the Greenback after softer US Personal Consumption Expenditures (PCE) Price Index data creates a tailwind for the major pair. Investors will keep an eye on the US ISM Manufacturing PMI for June on Monday. The general election in the United Kingdom is scheduled for Thursday.

According to the 4-hour chart, the bearish outlook of GBP/USD remains intact as it holds below the key 100-period Exponential Moving Average (EMA). However, the Relative Strength Index (RSI) crosses above the 50-midline, indicating that further upside looks favorable. Read more...

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