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 appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold clings to gains as US-Iran conflict continues to underpin safe-haven assets

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 could keep the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.