Pound Sterling Price News and Forecast: GBP/USD is neutral-to-bullish trading above the 1.3100 figure

FXStreet Team FXStreet

GBP/USD Price Analysis: Bulls struggle near two-month top, 5-day SMA offers immediate support

GBP/USD recedes to 1.3160 during the initial hour of Tuesday’s Asian session. The pair refreshed the two-month peak on Monday but failed to stay positive beyond 1.3200.

However, bullish signals from the MACD joins strong RSI, not near the overbought region, favor the GBP/USD buyers to keep the optimism while targeting a resistance line stretched from September 10, at 1.3246 now. In doing so, a clear break above the recent high of 1.3208 becomes necessary.

While the quote is likely to post another U-turn from the mid-1.3200 area, any further upside can be challenged by the August 18 high near 1.3270, a break of which could challenge the yearly top surrounding 1.3485.

GBP/USD Forecast: Brexit returns to the limelight

The GBP/USD pair is ending the first day of the week unchanged around 1.3150, after reaching a fresh two-month high of 1.3207. The British Pound found eased as speculative interest rushed into the greenback on positive coronavirus vaccine news, but its slump was limited by encouraging Brexit headlines. UK Finance Minister Rishi Sunak said that significant progress was made in Brexit talks while announcing a plan to provide stability to the financial sector in the post-Brexit era. Meanwhile, EU's chief Brexit negotiator Michel Barnier said they are redoubling their efforts to reach an agreement on the future EU-UK partnership.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD softens to near 1.1400 as ECB tightening bets fade

The EUR/USD pair trades with mild losses around 1.1415 during the early Asian session on Tuesday. The Euro softens against the US Dollar as traders reduce their bets on the European Central Bank rate hikes this year.

Gold tumbles 1.5% to fresh seven-month lows below $3,950

Gold remains under strong selling pressure for the second straight day early Tuesday, refreshing seven-month lows below $3,950. Renewed US-Iran hostilities over the weekend cast doubts over the sustainability of the peace deal. This, along with elevated expectations for Fed rate hikes, offers some support to the US Dollar and undermines the bullion.

Bitcoin stalls at $60K as buyer conviction fades, Strategy authorizes BTC sales

Bitcoin is trading around the $60,000 level on Monday after a sharp decline last week. With the top crypto struggling to recover, analysts suggest the market remains firmly in defensive territory as investors await stronger signs of demand.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.