Pound Sterling Price News and Forecast: GBP/USD is poised to extend its advance

FXStreet Team FXStreet

GBP/USD Price Analysis: Monthly channel’s resistance probe bulls above 1.4100

GBP/USD bulls catch a breather around 1.4125, up 0.05% intraday, amid Tuesday’s Asian session. The cable jumped to the highest in 10 weeks the previous day, not to forget posting the biggest daily gain since April 19.

However, the heavy run-up propelled the RSI line close to the overbought region as the prices test the upper line of the one-month-old rising trend channel. Though, the quote remains well beyond the 1.4010-20 previous resistance area, crossed on Monday.

GBP/USD Forecast: Bulls ignoring political risks

The British Pound soared to 1.4158 against the greenback, regardless of persistent political risks. UK Prime Minister Boris Johnson called on Sunday for talks with Scotland, Wales and Northern Ireland after Scotland SNP's pro-independence party won parliamentary elections. On a positive note, local elections in the UK further strengthened Conservative Prime Minister Boris Johnson's party, with the opposite Labour party losing a parliamentary seat.

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hovers around 1.3400 with bearish pressure intact

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.