Pound Sterling Price News and Forecast: GBP/USD drifts higher to near 1.3430 on Wednesday

FXStreet Team FXStreet

British Pound edges higher above 1.3400 on US-Iran peace optimism

The GBP/USD pair gathers strength to around 1.3430 during the early Asian trading hours on Wednesday, bolstered by Middle East peace hopes. Markets might turn cautious later in the day ahead of the UK Consumer Price Index (CPI) inflation data and the US Federal Reserve (Fed) interest rate decision.

Two months of final negotiations will begin immediately after the initial deal between the US and Iran is signed on Friday. US President Donald Trump said the Strait of Hormuz could reopen on Friday, and Washington will allow Iran to immediately start selling oil and fuel again as part of the deal to end the war, per the Wall Street Journal. Hopes of a US-Iran peace deal could underpin the riskier assets, such as the British Pound (GBP) against the US Dollar (USD) in the near term. Read more...

British Pound Sterling coils before inflation and a Fed reckoning

GBP/USD spent Tuesday going almost nowhere, closing fractionally higher near the middle of a range it has refused to leave for months. The stillness is not for lack of news; it is the calm of a market that has read Wednesday's calendar and decided to wait. UK inflation prints before the London open, the Federal Reserve (Fed) hands down its decision and fresh projections after dark, and a brand new Chair takes questions for the first time. None of it rewards a directional bet a day early.

On the daily chart Cable is wedged between its 50-day Exponential Moving Average (EMA) near 1.3450 and its 200-day EMA around 1.3400, and Tuesday did nothing to settle the standoff. Price stalled close to 1.3450 before fading, then dipped just under 1.3400 before recovering, boxed inside barely fifty pips for the session. The daily Stochastic Relative Strength Index (Stoch RSI) sits mid-range, the technical signature of a market with no conviction either way. Read more...

British Pound holds 1.3400 as Fed’s rate decision looms

The Pound Sterling (GBP) holds firm above the 1.3400 level on Tuesday as the US Dollar (USD) recovers some ground, even as geopolitical tensions ease following the US-Iran peace agreement. At the time of writing, the GBP/USD pair trades with minimal losses of 0.03%

Recent news showed that the US-Iran Memorandum of Understanding (MOU) would be signed on Friday in Burgentock, Switzerland, according to the Swiss Foreign Ministry. Meanwhile, market participants continued to cheer the agreement between Washington and Tehran, pushing Oil prices lower, while the Greenback remains steady ahead of the Federal Reserve’s (Fed) monetary policy decision. Read more...

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FXStreet Team

FXStreet

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