GBP/USD Price Forecast: Tests 1.3300 support as bearish bias prevails

GBP/USD inches lower after registering nearly 0.75 gains in the previous session, trading around 1.3310 during the Asian hours on Tuesday. The short-term bias stays mildly bearish as spot holds below the declining nine-day Exponential Moving Average (EMA) and now trades under the flatter 50-day EMA, signalling fading upside momentum. The recent sequence of lower closes from the 1.36 area and failure to reclaim the short-term average confirms that rallies remain vulnerable to renewed downside interest.

Additionally, the technical analysis of the daily chart indicates a persistent bearish bias, as the pair moves downwards within the descending channel pattern. Moreover, the 14-day Relative Strength Index (RSI) sits around 39, below the 50 midline but off oversold extremes, signalling persistent selling pressure without capitulation. Read more...

GBP/USD bounces from lows as US Dollar retreats

GBP/USD gained almost 0.75% on Monday, bouncing from Friday's low close to 1.3220 to settle on the high side of 1.3300. The session's recovery looks corrective rather than the start of a new trend; the pair remains in a clear downtrend from the late-January high near 1.3870, and Monday's candle has yet to challenge the cluster of resistance around the 200-day Exponential Moving Average (EMA). Price has closed below all of its key moving averages for several sessions, and the burden of proof sits with buyers.

Three high-impact events over the next three days will determine whether the bounce has legs. First up is the Federal Reserve (Fed) rate decision on Wednesday, where markets expect a hold at 3.75%, but the accompanying Summary of Economic Projections (SEP) and Chair Powell's press conference carry significant weight for US Dollar (USD) direction; any hawkish signal on the rate path would add downside pressure to the pair. Read more...

GBP/USD Price Analysis: Cable rebounds as markets digest US–Iran war

The GBP/USD pair is trading near the 1.3310 price region, trimming almost all its losses from Friday and breaking its four-day losing streak, as investors seem to have digested the United States/Israeli escalation in the war against Iran over the weekend. On Saturday, the US launched a massive strike on Iran’s Kharg Island. Although US President Donald Trump called for an alliance to protect and reopen the Strait of Hormuz, most nations refused to send ships to the region and instead pushed for diplomatic solutions.

The Bank of England (BoE) is expected to keep rates on hold this Thursday, following the Federal Reserve (Fed) issuing its own interest rate decision on Wednesday. Markets expect the Fed to keep the rates unchanged at 3.50%-3.75%. The Fed will also publish a fresh Summary of Economic Projections (SEP) or dot plot, most likely impacted by war developments and higher oil prices. Read more...