Pound Sterling Price News and Forecast: GBP/USD stability above 20-day EMA backs further upside

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GBP/USD Price Forecast: Stability above 20-day EMA backs further upside

The British Pound (GBP) ticks lower to near 1.3380 against the US Dollar (USD) during the European trading session on Tuesday. The GBP/USD pair edges down as the US Dollar gains slightly; however, the Cable is broadly upbeat.

At press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.1% higher to near 100.90. The US Dollar is expected to trade cautiously as investors await the Federal Open Market Committee (FOMC) minutes of the June policy meeting, which will be released on Wednesday. Investors will closely read FOMC minutes to get fresh cues regarding the Federal Reserve’s (Fed) monetary policy outlook. Read more...

GBP/USD outlook: Recovery faces strong headwinds on approach to key 1.3400 resistance zone

Cable moves within a narrow-range sideways mode for the second consecutive day, after 1% advance last week that completed reversal pattern on weekly chart (after the downleg from 1.3869 was contained by ascending trendline, drawn off 1.0348, 2022 low) and generated positive signal on close above weekly Ichimoku cloud top (1.3335).

On the other side, the picture on daily chart is not that optimistic (14-d momentum remains in negative territory and turns south, stochastic is emerging from overbought territory) as long upper shadows on last two daily candles point to strong headwinds from very significant 1.3400 resistance zone (consisting of converged 200/100/55DMAs / 50% retracement of 1.3653/1.3140 / daily cloud base). Read more...

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD corrects lower after testing 1.3400

Following Monday's advance, GBP/USD touched its highest level since mid-June slightly above 1.3400 early Tuesday but lost its bullish momentum. The pair trades marginally lower on the day at around 1.3380 as investors adopt a cautious stance following news of Iran targeting commercial ships attempting to pass through the Strait of Hormuz.

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