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.

AUD/USD climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold bulls hesitant below $4,200 as Fed risks and firmer USD cap intraday gains

Gold struggles to capitalize on modest intraday gains and remains below the $4,200 mark, well within a three-week-old trading range. US Federal Reserve Chair Kevin Warsh’s unwillingness to offer fresh cues on further policy moves forced investors to price out the possibility of policy tightening later this month. Moreover, the recent sharp pullback in US government bond yields from multi-year highs, which dragged the US Dollar to a two-week low on Friday, acts as a tailwind for bullion.

Pi Network: Weak momentum and waning demand reinforce downside bias

Pi Network edges lower, risking a bearish conclusion to its short-term consolidation above the $0.0774 horizontal support. A steady decline in the notional value of active PI futures contracts and the weekly spot trading volume suggests reduced retail demand. The PI token risks a retest of its record low around $0.0704 as bearish momentum remains dominant on the daily chart.

Canada CPI expected to show a pick-up in inflation in September

Canada’s September CPI figures will be the focus of attention on Monday. Indeed, Statistics Canada data will provide markets with an update on price pressures ahead of the BoC’s October 28 gathering, when officials are expected to keep the interest rate steady at 2.25%, broadly in line with analyst consensus.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.