Pound Sterling Price News and Forecast: GBP/USD may find the initial support at a two-month low at 1.3365

FXStreet Team FXStreet

GBP/USD Price Forecast: Hovers above 1.3400 despite a persistent bearish bias

The GBP/USD pair edges higher for the second successive day, trading around 1.3420 during the Asian hours on Monday. However, the bearish bias persists as the daily chart’s technical analysis indicates that the pair remains within the descending channel pattern.

The 14-day Relative Strength Index (RSI) remains below the 50 level, strengthening the bearish bias. However, the GBP/USD pair is positioned below the nine-day Exponential Moving Average (EMA), suggesting the short-term price momentum is weaker. Read more...

GBP/USD Weekly Forecast: UK data raises doubts about local economic health

GBP/USD fell for three weeks in a row as risk aversion favored demand for the US Dollar (USD), while tepid United Kingdom (UK) data undermined demand for the Sterling Pound (GBP). The pair bottomed at 1.3365 mid-week, its lowest since May, recovering roughly 100 pips ahead of the weekly close.

Investors spent the week on their toes amid United States (US) fiscal and political woes. On the one hand, concerns revolved around US President Donald Trump’s rage against Federal Reserve (Fed) Chairman Jerome Powell, following the latter's decision to keep interest rates floating between 4.25% and 4.50%. Read more...

GBP/USD consolidates around 1.3400, remains close to two-month low

The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow band, just above the 1.3400 round figure during the Asian session. Meanwhile, spot prices remain well within striking distance of a nearly two-month low touched last week.

The US Dollar (USD) remains on the back foot below the monthly peak touched last Thursday amid mixed signals about the Federal Reserve's (Fed) rate-cut path, which, in turn, is seen acting as a tailwind for the GBP/USD pair. In fact, Fed Governor Christopher Waller last week backed the case for a rate cut in July. Investors, however, seem convinced that the US central bank will keep interest rates higher for longer amid the evidence that the Trump administration's increasing import taxes are passing through to consumer prices. Read more...

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