Pound Sterling Price News and Forecast: GBP/USD is trading 0.25% higher on Wednesday after some recent weakness

FXStreet Team FXStreet

GBP/USD Price Analysis: The 55 SMA and a key Fib level are close by to provide support

Looking at the recent GBP price action it seems the price has pulled away from the oversold area. This is a mean reversion type move for now but GBP/USD will be a competition over USD weakness vs Brexit headlines over the coming sessions. The dollar index is trading 0.30% lower at the moment and that is the same as GBP/USD at the time of writing. So it might not be that GBP is improving but more that the USD strength was slightly overdone and there has been a retracement.

GBP/USD analysis: Dropped below 1.3000

On Tuesday, the GBP/USD exchange rate dropped below the weekly S2 at 1.3007.

From the one hand, it is likely that some downside potential could continue to prevail in the market. In this case the currency pair could face the support level formed by the weekly S3 and the monthly S2 at 1.2835.

Meanwhile, it is unlikely that bulls could prevail in the market in the nearest future, and the exchange rate could exceed the 1.3100 area due to the resistance formed by the weekly and monthly S1s, as well the 55-hour SMA.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.