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 struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.

GBP/USD tests key moving averages as growth downgrade weighs

GBP/USD was nearly flat on Wednesday, edging up 0.08% to settle around 1.3370 in a quiet session. The pair has fallen sharply from its late-January high near 1.3870 and is now testing the 200-day Exponential Moving Average, with this week's one-week forex heatmap showing Pound Sterling as one of the worst performers against the US Dollar, down about 1.4% on the week.

Gold benefits from a retreating USD; reduced Fed rate cut bets cap gains

Gold attracts some buyers for the second consecutive day on Thursday amid a modest US Dollar pullback from an over three-month high, though it remains below the $5,200 mark. Wednesday's upbeat US macro data further tempered hopes for three rate cuts by the Fed in 2026. Furthermore, escalating Middle East tensions might continue to benefit the USD's status as the global reserve currency and contribute to capping the bullion.