Pound Sterling Price News and Forecast: GBP/USD extends gains to test 1.2704 level

FXStreet Team FXStreet

GBP/USD Price Analysis: Rises to 1.2700 nearing 14-day EMA

GBP/USD extends gains for the second successive session, trading around 1.2700 during Asian hours on Tuesday. Analysis of the daily chart shows a broadening bottom pattern in price action, representing increasing volatility. This chart pattern suggests a potential correction before moving lower.

The 14-day Relative Strength Index (RSI) is positioned below the 50 level, indicating a bearish bias. Furthermore, the Moving Average Convergence Divergence (MACD) momentum indicator also suggests a downward trend, as the MACD line is above the centerline but diverges below the signal line. Breaking below the centerline may strengthen the downward trend. Read more...

GBP/USD looks for an extended pickup from latest downturn

GBP/USD ground out some bullish chart paper on Monday, climbing from a recent swing low into 1.2650 as markets kicked off the new trading week with risk appetite firmly on the front foot. Key economic data remains limited through most of the week, with Cable traders set to look ahead to high-impact calendar releases that won’t land until later. Gross Domestic Product (GDP) updates for the US and the UK are due in the back half of the trading week, with US Personal Consumption Expenditure (PCE) Price Index inflation numbers slated for Friday.

Tuesday's release schedule is strictly mid-tier, leaving markets to churn on statements from central bank policymakers. A smattering of Fedspeak comments sent minor jitters through Monday's markets, with more of the same expected on Tuesday. Read more...

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