Pound Sterling Price News and Forecast: GBP/USD holds around 1.3900

FXStreet Team FXStreet

GBP/USD Price Analysis: All eyes on 4-hour resistance

As per the prior analysis, GBP/USD Price Analysis: Bulls retreat but will be back for more, the bulls have indeed come back for more and have crucially held above a key 4-hour 21-EMA. While there are prospects of an advance to test the midpoint of the 1.39 handle and beyond, 4-hour resistance still needs to give as follows:

GBP/USD Forecast: Hopes keeping the pound afloat

The GBP/USD pair bottomed for the day at 1.3858 but trimmed intraday losses and ended the day with modest gains in the 1.3900 price zone. The American dollar advanced early in the European morning but quickly retreated as speculative interest believes that the US Federal Reserve will maintain its monetary policy on hold. The pound, on the other hand, received some attention after the UK reported that at least 50% of its population had received at least one shot of a coronavirus vaccine, with the number of daily deaths keeps decreasing.

EUR/USD retreats toward 1.1600 after upbeat US data

EUR/USD pulls away from session highs and declines toward 1.1600 in the American session on Wednesday. Upbeat private sector employment and ISM Services PMI data from the US help the US Dollar (USD) stay resilient against its rivals, limiting the pair's upside.

GBP/USD meets resistance around 1.3400

In line with its risk-linked peers, GBP/USD stages a modest comeback on Wednesday, although meeting some resistance around the 1.3400 neighbourhood. Cable’s humble recovery struggles to gather momentum as the Greenback benefits from better-than-forecast macroeconomic data releases.

Gold loses traction after testing $5,200

Gold corrects lower after testing $5,200 but manages to stay in positive territory in the second hald of the day on Wednesday. The precious metal remains well supported by the deterioration of the geopolitical scenario in the Middle East, while the US Dollar's resilience caps the upside.